EU Commission accuses Temu of obstructing Dublin inspection over foreign subsidies

Temu European Commission Dublin inspection foreign subsidies potential 1% fine

The European Commission has sent a formal notice to PDD Holdings, the owner of the Chinese‑owned online retailer Temu, and its Irish subsidiary WhaleCo Technology Ltd. The notice alleges that Temu obstructed a surprise inspection carried out in Dublin between 2 and 5 December 2025 under the EU Foreign Subsidies Regulation. The Commission preliminarily finds that Temu failed to cooperate by not providing requested information on the organisation and management of its EU activities, the IT tools and systems used, and specific books and records.

If the Commission confirms the breach, it can impose a fine of up to one percent of Temu’s total revenue for the previous fiscal year. The investigation also continues into whether Temu received foreign subsidies that could distort competition in the EU internal market. Temu was previously fined €200 million in May 2025 for illegal products on its marketplace and has about 130 million users in the 27‑member EU, making it one of the bloc’s largest online retailers. The company denies the accusations, saying it fully cooperated with the inspectors and did not receive any unfair foreign subsidies.

Entities: European Commission · Ireland · Ireland (Dublin) · PDD Holdings · Temu · WhaleCo · WhaleCo Technology Limited

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 19 SOURCES] If a violation is confirmed, the Commission can impose a fine of up to one percent of Temu's total revenue. (Existing claim reused.)
[DISPUTED] Temu obstructed the investigation by not providing certain business books and documents. (EU Commission)
[● 19 SOURCES] The Commission is also investigating whether Temu received state subsidies that could distort the EU internal market. (Existing claim reused.)
[● 5 SOURCES] The Commission planned unannounced inspections of PDD and its subsidiary WhaleCo in Dublin in early December 2025. (EU Commission)
[● 5 SOURCES] Temu operates in the EU through PDD's subsidiary WhaleCo. (EU Commission)
[● 17 SOURCES] Temu has about 130 million customers in Europe and is among the largest online retailers in Germany. (Existing claim reused.)
[● 17 SOURCES] In May 2025 the Commission fined Temu €200 million for illegal products on its marketplace. (Existing claim reused.)
[DISPUTED] The European Commission says Temu violates EU competition law. (EU Commission)
[DISPUTED] Temu denies the EU’s accusations, stating it fully cooperated with the inspection and did not receive any unfair foreign subsidies. (Company statements quoted in multiple articles.)
[DISPUTED] The Commission preliminarily finds that Temu infringed its duty to actively cooperate during the inspection. (Multiple articles quote the Commission’s preliminary finding of non‑cooperation.)
[● 19 SOURCES] The European Commission carried out surprise inspections at WhaleCo premises in Dublin between 2 and 5 December 2025. (The Commission’s notice and multiple articles describe the unannounced inspections in Dublin during early December 2025.)
[DISPUTED] Temu did not provide information on its EU organisation, management, IT tools, and specific books and records as requested by the Commission. (Repeated across all articles describing the alleged obstruction.)