EU accuses Temu of obstructing foreign subsidies probe

The European Commission has accused Chinese-owned online retail platform Temu of failing to cooperate fully during an investigation conducted under the EU's Foreign Subsidies Regulation, allegations the company has strongly denied.

In a statement released on July 31, the Commission said Temu had breached its obligation to actively cooperate during an unannounced inspection carried out in Ireland in December 2025, dpa reports.

The inspection formed part of an investigation into concerns that Temu may have benefited from foreign subsidies that could distort competition within the European Union's internal market. According to the Commission, the purpose of the visit was to gather evidence.

The Commission alleged that Temu failed to comply with requests for 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."

The Commission stressed that the allegations do not prejudge the outcome of its broader investigation into potential foreign subsidies.

Temu rejected the accusations, saying the company "cooperated fully and complied with all the requests the Commission made during the inspection."

"Temu also categorically denies having received any foreign subsidies that distort the internal market," the company said in a statement.

By Sabina Mammadli