The European headquarters of Temu in Dublin was raided last week by EU regulatory authorities amid suspicions of potential subsidies granted by the Chinese government to the online retailer, a subsidiary of Chinese e-commerce giant PDD Holdings, a source familiar with the matter told Reuters.
Temu has not yet responded to requests for comment, and the European Commission did not immediately reply to an emailed inquiry.
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Investigation background and implications for the EU market
The probe is based on the EU’s Foreign Subsidies Regulation (FSR), designed to curb unfair competitive advantages enjoyed by companies receiving state support from outside the bloc. The regulation aims to level the playing field and prevent foreign-subsidized firms from undermining European competitors.
Temu sells a wide array of products—from smartphones and clothing to home accessories—at extremely low prices, using the slogan “shop like a billionaire.” The platform has attracted millions of low-income consumers, especially in the United States, its largest market, and across the European Union, where it averages around 116 million monthly users.
The raid comes as EU authorities prepare measures targeting the surge of low-value e-commerce parcels entering the bloc. These packages have benefited from a customs exemption for items valued below €150, enabling companies like Temu to expand rapidly. The European Commission intends to remove this exemption by the end of next year.
Photo: BBC
