EU charges Chinese e-commerce platform Temu over non-cooperation in subsidy probe
The European Commission has formally accused Temu of failing to cooperate with investigators during a December 2025 raid of its Dublin office, part of a foreign-subsidy investigation.
On July 31, the European Commission announced charges against Chinese online retailer Temu for not cooperating with investigators during a December 2025 inspection of its Dublin headquarters. The raid was part of a probe under the EU Foreign Subsidies Regulation to determine whether Temu, owned by PDD Holdings, benefits from state aid that could give it an unfair edge in the European market. The Commission claims Temu failed to supply data on its EU organisational structure, management, IT tools and specific accounting records, a breach that could attract a fine of up to 1% of its yearly turnover.
Temu issued a statement contesting the charges, affirming full cooperation and denying any reliance on foreign subsidies. The regulator also highlighted broader efforts to curb cheap Chinese imports via platforms such as Temu, Shein and AliExpress, including a new €3 fee on small parcels from China. Earlier, in May, the Commission fined Temu €200 million for inadequate measures to prevent illegal goods from being sold on its site.
Why it matters
The case could set a precedent for how the EU enforces its foreign-subsidy rules on large Chinese tech firms.
In this story