EU Accuses Temu of Dodging Subsidies Probe

What is the EU investigating Temu for?

The European Commission has accused Chinese e-commerce platform Temu of failing to cooperate with an investigation launched under the EU's Foreign Subsidies Regulation — a rule designed to determine whether companies from outside Europe receive government support that distorts fair competition.

What did the EU request from Temu?

During an inspection of Temu's European headquarters in Dublin, Ireland, in December, EU officials requested detailed information about:

• The organisation and management of Temu's operations in the EU
• IT tools and systems used for its EU-based activities
• Specific books and records related to the company's European business

According to the Commission, Temu failed to comply with those requests — something the company flatly denies.

What penalty does Temu face?

The lack of cooperation could result in a fine of up to 1% of Temu's total annual global turnover. This follows a separate €200 million fine the Commission imposed on Temu in May for allegedly not doing enough to prevent the sale of illegal products on its marketplace.

What does Temu say?

Temu issued a statement denying the accusations. The company said it cooperated fully with the investigation and denied receiving any foreign subsidies that distort competition. It stated: "The company generates sustainable cash flows from its own operating activities that are sufficient to finance Temu's EU operations. We do not rely on foreign subsidies to fund competitive activities or create any competitive advantage in the internal market."

How does this fit into the broader EU crackdown on Chinese platforms?

The investigation is part of a wider tightening of EU rules on Chinese e-commerce. Since 1 July, the bloc has applied a €3 fee on small parcels imported from China. Temu, Shein and AliExpress are all facing increased regulatory scrutiny as Europe tries to level the playing field for domestic retailers.