The European Commission charged Chinese online retailer Temu on July 31, 2026, for not cooperating during an unannounced inspection of its European headquarters in December 2025 [1, 2, 3]. The raid was part of a wider investigation under the EU Foreign Subsidies Regulation to determine if Temu, owned by PDD Holdings, received foreign subsidies that distorted competition in the EU market [1, 2, 4, 5, 3, 6].
The December inspection took place between December 2 and December 5, 2025. While some sources cite Berlin as the raid location, the majority, including the Commission, state that Temu’s European headquarters are in Dublin [1, 2, 4, 5, 3, 6]. During the raid, the Commission requested detailed information on Temu’s organization, management, IT systems, and specific books and records about its activities in the EU. The Commission said Temu failed to comply with these requests [1, 2, 4, 5, 3, 6]. The Commission stated, "Those requests concerned the provision of information on the organisation and management of Temu's activities in the EU and the IT tools and systems used by the company for its activities in the EU, as well as to the provision of specific books and records on the company's activities in the EU" [1].
Temu denied the charges, saying it cooperated fully with the Commission. The company denied receiving any distorting foreign subsidies and asserted it funds its EU operations from its own revenues. Temu said, "The Company generates sustained cash flows from its own operating activities that are sufficient to fund Temu's operations in the EU. We do not need to count on 'foreign subsidies' to fund any competitive activities or to create any competitive advantage in the internal market" [2].
If the Commission’s findings are confirmed, Temu could face a fine of up to 1% of its total annual turnover according to the Foreign Subsidies Regulation. The Commission noted, "If confirmed, the conduct would constitute a breach of Temu's procedural obligations under the Foreign Subsidies Regulation and could result in a fine of up to 1% of PDD Holdings' total turnover in the preceding business year" [3].
The charge against Temu concerns only the company’s conduct during the December 2025 inspection and is separate from the ongoing investigation into foreign subsidies [3]. This follows Temu’s earlier fine of €200 million imposed by the European Commission in May 2026 for failing to prevent the sale of illegal products on its platform [1, 2, 4, 5, 6]. Additionally, the EU introduced a €3 tariff on small parcels imported from China through platforms like Temu starting July 1, 2026, to curb cheap imports [1, 2, 4, 5, 6].
