Temu’s European headquarters in Dublin were raided by EU regulators last week on concerns about potential Chinese state subsidies granted to the online retailer, a subsidiary of China’s ecommerce giant PDD Holdings, a person familiar with the matter said on Wednesday.
Temu did not immediately respond to a request for comment.
The raid comes as the EU plans to crack down on low-value ecommerce shipments that have flooded into the bloc thanks to a customs waiver on parcels worth less than €150, which European retailers said gave platforms like Temu and Shein an unfair advantage. The EU executive plans to scrap that waiver by the end of next year.
The European Commission’s Foreign Subsidies Regulation (FSR) takes aim at unfair foreign aid for companies with the goal of reining in competition from non-EU companies subsidised by their governments.
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A commission spokesperson said: “We can confirm that the commission has carried out an unannounced inspection at the premises of a company active in the ecommerce sector in the EU, under the Foreign Subsidies Regulation.”
The commission did not name the company or say where the raid took place.
Temu sells everything from smartphones to duvet covers and leggings at ultra-low prices and has “shop like a billionaire” as its tagline. Since launching in the US in September 2022, it has drawn in tens of millions of shoppers globally and in the EU, where it has around 116 million average monthly users.
Raids are usually carried out when EU regulators have evidence of violations, either from whistleblowers or from their own investigations. They can lead to companies offering concessions or co-operating in return for reduced fines. – Reuters
