EC Issues Statement of Grounds Against Temu for Alleged Obstruction During FSR Inspection
The European Commission (EC) has issued a Statement of Grounds (SoG) against PDD Holdings and its Irish subsidiary WhaleCo, alleging that the companies obstructed an inspection under the Foreign Subsidies Regulation. The probe took place in December 2025 at WhaleCo's Dublin office as part of a broader investigation into whether Temu received foreign subsidies distorting EU competition. The EC claims Temu failed to cooperate with basic requests regarding its European operations, IT systems, and financial records—information it said was essential for the investigation. The FSR allows fines up to 1% of annual turnover for non-cooperation or incomplete submissions. A final decision will follow after Temu reviews the SoG and responds. Temu has denied obstructing the inspection and stated it complied with all requests, while also denying receiving any distortive foreign subsidies.
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Topics: European Commission Foreign Subsidies Regulation (FSR) inspection obstruction PDD Holdings Temu WhaleCo