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EU Accuses Temu of Obstructing Foreign Subsidies Inspection in Dublin

By  |  August 5, 2026
Temu, eCommerce, retail

The European Commission has accused Chinese online marketplace Temu of failing to cooperate with investigators during an inspection of its European headquarters in Dublin, escalating a probe into whether the retailer benefited from foreign subsidies that may have distorted competition in the European Union.

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    According to reporting by Irish Legal News, citing a European Commission announcement, regulators issued a formal statement of objections alleging that Temu did not comply with several requests for information during an unannounced inspection conducted in December 2025 under the EU’s Foreign Subsidies Regulation.

    The Commission said investigators sought information related to Temu’s European operations, including the company’s organizational structure, information technology systems, and certain business records. The regulator alleges the company failed to provide the requested material during the inspection, according to Irish Legal News and the Commission.

    If the allegations are upheld, the Commission could impose a fine of up to 1% of Temu’s total annual global turnover under the bloc’s foreign subsidies rules, Irish Legal News reported.

    The investigation stems from the Commission’s broader examination of whether Temu, owned by PDD Holdings, received financial support from non-EU governments that could have provided an unfair competitive advantage in the European market. The Foreign Subsidies Regulation, which came into force in 2023, gives the Commission authority to investigate subsidies granted by non-EU governments that may distort competition within the bloc.

    Related: France Launches Probe Into Shein, Temu, AliExpress, and Wish

    Temu rejected the allegations, according to Irish Legal News. The company said it had fully cooperated with the inspection and complied with all requests made by Commission officials. Temu also denied receiving foreign subsidies that distorted competition, saying its European operations are financed through cash generated by its own business activities rather than government support, according to the publication.

    The case comes as European authorities increase scrutiny of Chinese e-commerce platforms, including Temu, Shein and AliExpress, amid concerns over competition and the rapid growth of low-cost imports into the EU. According to Irish Legal News, the Commission has introduced a range of measures targeting cross-border online retailers in recent years.

    Temu has also faced separate regulatory action in the EU. As Irish Legal News noted, the European Commission imposed a €200 million fine on the company in May under the Digital Services Act after concluding it had not done enough to prevent the sale of illegal products on its platform. Temu has disputed that decision.

    Source: Irish Legal News