Temu hit with EU charges for not cooperating in December raid - Inside Retail Asia

The charges could result in a fine of up to 1 per cent of Temu’s total annual turnover. (Source: Reuters/Dado Ruvic) By Inti Landauro August 3, 2026 Text Size --> The European Commission said on Friday it had charged Chinese online retailer Temu with not cooperating with investigators during a December raid on its European headquarters in Dublin as part of a subsidy investigation. The charges could result in a fine of up to 1 per cent of Temu’s total annual turnover. The raids were part of an investigation under the EU Foreign Subsidies Regulation into whether Temu, a unit of PDD Holdings, has received state aid which may have given it an unfair advantage in Europe. Temu, in a statement, said it disagreed with the Commission’s charges and denied receiving distorting subsidies. The Commission, which acts as the EU competition enforcer, said Temu failed to comply with several requests for information during the raids. “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,” it said in a statement. Temu said it had cooperated fully and complied with all the requests made by the Commission during the inspection. The EU has been taking measures to stem the flow of cheap imports from China through e-commerce platforms such as Temu, Shein and AliExpress, including by imposing a €3 fee from July 1 on small parcels from China, which had previously been duty-free. “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,” it said. In a separate case, Temu was fined €200 million (US$230 million) by the Commission in May for not doing enough to stop the sale of illegal products on its platform. Reporting by Inti Landauro; Editing by Charlotte Van Campenhout, Kirsten Donovan of Reuters. Recommended By IR Strategy IR Pro Kelly Cook on leadership, learning and her journey to CEO of David’s Bridal Nicole Kirichanskaya Electronics & appliances IR Pro How this consumer electronics chain connects online and in-store Richard Taylor Strategy IR Pro How 1-800-Contacts exec Amy Larson is fighting for affordable eyewear Nicole Kirichanskaya Marketing IR Pro What brands can learn about authentic marketing from Bluey’s global rise Hayley Read Strategy IR Pro What the end of price matching at Target US signals about its future strategy Nicole Kirichanskaya Openings & closings Coach expands global coffee concept in Resorts World Sentosa Kaycee Enerva