EU Charges Temu Over Cooperation During Foreign Subsidy Investigation

The European Commission has charged Temu with failing to cooperate during an inspection linked to an investigation into possible foreign subsidies.

 EU Charges Temu Over Alleged Lack of Cooperation in Subsidy Probe

BRUSSELS — July 31, 2026

The European Commission has charged Chinese online marketplace Temu with failing to cooperate during an inspection carried out at its European headquarters in Dublin as part of an ongoing investigation into possible foreign subsidies.

The case is being examined under the European Union's Foreign Subsidies Regulation, which allows authorities to investigate whether government support from outside the EU gives companies an unfair advantage in the European market. If the allegations are confirmed, Temu could face a fine of up to 1% of its annual global turnover.

According to the Commission, investigators requested information during the December inspection about Temu's management structure, business operations in the European Union, information technology systems, and company records. EU officials said the company did not fully comply with those requests.

Temu rejected the allegations, saying it fully cooperated throughout the inspection and complied with every request made by the Commission.

The company also denied receiving government subsidies that distort competition in Europe. It said its operations in the European Union are funded through its own business activities and do not depend on foreign financial support.

The investigation is part of broader European efforts to examine the rapid growth of Chinese e-commerce platforms in the region. The EU has introduced several measures aimed at addressing concerns over low-cost imports from China, including a €3 fee on small parcels from China that took effect on July 1 after such shipments had previously been exempt from customs duties.

Temu, which is owned by PDD Holdings, is also facing separate regulatory scrutiny in Europe. In May, the European Commission imposed a €200 million fine on the company after concluding it had not done enough to prevent the sale of illegal products through its online marketplace.

The current subsidy investigation remains ongoing, and the European Commission has not yet reached a final conclusion on whether Temu benefited from unfair foreign financial support.