JD.com offers EU remedies in $2.5B Ceconomy bid

Chinese e-commerce giant JD.com ↘ 0.14% has offered remedies to the European Union in an effort to resolve regulatory concerns over its $2.5 billion bid for German electronics retailer Ceconomy, according to an EU regulatory filing disclosed on Thursday.reuters

The filing did not specify what remedies JD.com proposed. The move comes as the company faces mounting pressure from both European regulators and escalating geopolitical tensions between Beijing and Brussels over the deal.

Foreign Subsidies Regulation Under Scrutiny

The European Commission opened a full-scale investigation into the acquisition in May under the Foreign Subsidies Regulation, which targets unfair foreign state aid. The Commission cited concerns that JD.com might have received foreign subsidies that could distort the bloc's internal market. Last month, JD.com was hit with a formal notice of regulatory concerns over the bid.wmbdradio+1

The Foreign Subsidies Regulation, which took effect in 2023, gives Brussels the power to investigate and block deals involving companies that benefit from non-EU government support. The JD.com-Ceconomy case represents one of the most high-profile applications of the regulation to date.

China Pushes Back

The probe has drawn a sharp response from Beijing. China said on Wednesday that the EU's investigation constituted "improper extraterritorial jurisdiction" and ordered entities not to implement or assist with the probe.aol+1

The diplomatic friction underscores the broader tensions between China and the EU over trade and investment policy. JD.com's decision to offer remedies suggests the company is seeking a negotiated path forward rather than risking an outright block of the transaction, even as its home government openly challenges the legitimacy of the EU's regulatory authority.