THE WHAT? The European Commission has carried out unannounced inspections at Temu as part of an investigation into potential violations of the EU Foreign Subsidies Regulation.
THE DETAILS The raid took place at one of Temu’s Irish premises, targeting possible foreign state support that could distort competition in the EU market. Temu, owned by PDD Holdings, has grown rapidly across Europe with low-priced fashion, electronics and home goods — a model that has drawn ongoing scrutiny from regulators and rivals.
The FSR, in force since 2023, allows the Commission to seize data during dawn raids when foreign subsidies are suspected. This marks only the second known enforcement action under the regulation, following an earlier case involving Chinese-backed Nuctech.
THE WHY? The move reflects growing EU efforts to clamp down on potentially subsidised non-EU platforms that may undermine fair competition in the region’s digital and consumer markets.
Source: MLex
The post EU Raids Temu Over Suspected Breach of Foreign Subsidies Rules appeared first on Global Cosmetics News.