Temu pushes back after EU raises concerns over surprise inspection

Dubai: The European Union has accused Temu of failing to provide information requested during a surprise inspection, prompting the online retailer to reject the preliminary findings and deny receiving foreign subsidies that distorted competition.

The European Commission said on Friday that Temu may have breached its duty to cooperate during inspections carried out between December 2 and December 5, 2025, at the Dublin premises of its subsidiary WhaleCo.

The inspections formed part of an investigation into whether the Chinese-owned online retailer received foreign subsidies that could have distorted competition within the European Union.

Temu said in a statement to Gulf News that it did not agree with the Commission’s preliminary findings and maintained that it had responded to all requests made during the inspection.

“Temu does not agree with the Commission's preliminary findings in its Statement of Grounds. Temu cooperated fully and complied with all the requests the Commission made during the inspection. We will analyze and respond to the statement of grounds and trust the Commission will reconsider its position.”

EU raises concerns over company records

The Commission preliminarily found that Temu failed to cooperate on several aspects of the inspection, including requests for information about the organisation and management of its activities in the EU.

Officials also sought details about the IT tools and systems used by the company, along with specific books and records connected to its European operations.

The Commission said the absence of this information prevented investigators from examining sources that could have been relevant to the subsidy investigation.

Friday’s accusation relates only to Temu’s conduct during the December inspections and does not represent a final decision on whether the company received distortive foreign subsidies.

Temu will now have an opportunity to respond to the Commission’s concerns before any final findings are reached.

Temu denies receiving foreign subsidies

The retailer also rejected the wider suggestion that its operations in Europe had been supported by subsidies capable of providing an unfair advantage.

“Temu also categorically denies having received any foreign subsidies that distort the internal market. Temu is committed to fair competition. The Company generates sustained cash flows from its own operating activities that are sufficient to fund Temu's operations in the EU. We do not need to count on "foreign subsidies" to fund any competitive activities or to create any competitive advantage in the internal market.”

Temu said it would continue engaging with European regulators while complying with its obligations under EU law.

“We remain committed to continuing to cooperate with the Commission and comply with all our legal obligations under EU law.”

Platform has 130 million EU users

Temu has about 130 million users across the EU’s 27 member states, equivalent to nearly one-third of the bloc’s population.

Its scale has made the platform one of Europe’s largest online retailers and placed its operations within the scope of increased regulatory scrutiny covering competition, consumer protection and the conduct of large digital platforms.

The Commission’s foreign subsidies investigation remains ongoing, with the latest Statement of Grounds focused on whether Temu cooperated fully during the December 2025 inspection.

- With inputs from AFP.