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Temu denies foreign subsidies claims as EU probes cooperation during investigation

Temu has rejected allegations from the European Commission that it received foreign state subsidies providing an unfair advantage in the EU market. The company also disputes claims it failed to fully cooperate during an unannounced inspection at its European headquarters in Dublin in December 2025. Temu maintains it responded to all requests and is confident the Commission will reconsider its position after reviewing the formal response.

The European Commission issued a Statement of Grounds to Temu’s parent company PDD Holdings and subsidiary WhaleCo Technology Limited concerning non-compliance during the inspection. However, this document does not confirm any subsidy receipt or competition distortion, as the underlying investigation continues separately. If the Commission's preliminary findings are upheld, Temu could face fines up to 1% of PDD Holdings’ global annual turnover for procedural breaches under the Foreign Subsidies Regulation.

Temu highlighted its operations are funded by its own cash flows and denied relying on foreign subsidies. The investigation coincides with broader scrutiny of Temu in Europe, including a recent €200 million fine for insufficient risk assessment of illegal goods. In Cyprus, Temu’s popularity remains strong despite new customs duties and past consumer warnings related to unsafe products sold on its platform.

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