The European Commission alleges PDD Holdings’ Temu failed to cooperate in a December inspection, risking fines up to 1% of turnover.
The European Commission has accused Temu, owned by PDD Holdings, of obstructing an inspection under the Foreign Subsidies Regulation. The probe, conducted at Temu’s Dublin offices in December 2025, aimed to determine if foreign subsidies distorted EU competition.
Temu allegedly failed to provide requested documents on its EU operations, IT systems, and financial records. The EC stated such cooperation is standard in early-stage competition investigations. The lack of data hindered the review of potentially relevant evidence.
Under FSR rules, the EC can impose fines of up to 1% of a company’s global turnover for non-compliance. Temu may now respond to the Statement of Grounds before the EC finalizes its decision.