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European Commission Accuses Temu of Obstructing Subsidy Probe

The European Commission has officially charged Temu with failing to cooperate during a surprise inspection of its Dublin headquarters last December. Regulators allege the Chinese e-commerce retailer actively hindered a probe into whether the company gained an unfair market advantage through illicit foreign subsidies, marking a significant escalation in regulatory scrutiny.

European Commission Accuses Temu of Obstructing Subsidy Probe

Between December 2 and 5, officials conducted an unannounced raid on the firm’s Irish offices, which serve as the European hub for its parent company, PDD Holdings. Investigators sought to determine if the platform’s rapid expansion across the continent relied on distorted financial support from overseas.

In a formal statement released Friday, the Commission confirmed its preliminary finding that Temu infringed upon its legal duty to participate in the inspection. The company now faces potential penalties for allegedly withholding information and failing to comply with procedural requirements during the site visit.

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