Temu Accused of Obstructing EU Inspection: What Happened in Dublin
Poinews.com – The European Commission has formally accused Temu of obstructing an important regulatory inspection at its Irish subsidiary, WhaleCo, in Dublin. This development comes after EU antitrust officials conducted surprise raids in early December 2025, seeking critical evidence regarding whether the Chinese e-commerce giant received potentially distortive foreign subsidies from its home country. The commission’s preliminary findings suggest that Temu has infringed upon its duty to actively cooperate on multiple aspects related to the conduct of the inspection, marking a significant challenge for the rapidly expanding online retailer in the European market.
Details of the Inspection Obstruction
According to the European Commission’s statement, Temu failed to provide several categories of essential information during the December 2025 inspections. Specifically, the company did not supply documentation related to the organisation and management of its activities within the European Union. Additionally, Temu withheld IT tools and systems used by the company for its EU operations, along with specific books and records documenting the company’s activities in the region. The commission emphasized that not providing this information prevented officials from reviewing sources that could be relevant for its investigation into potential subsidy distortions.
While the accusation specifically relates to the December 2025 inspections, Temu now has the right to formally reply to Brussels’ concerns. The company has categorically denied receiving unfair foreign subsidies, maintaining that its business model operates independently without relying on preferential treatment from Chinese authorities. This denial forms a central part of Temu’s defense against the EU’s allegations.
Temu’s Response and Market Position
“Temu cooperated fully and complied with all the requests the commission made during the inspection,” the company stated, adding that it will thoroughly analyse the commission’s claims. “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.”
Despite the accusations, Temu continues to maintain a strong presence in the European market. The online retailer currently serves 130 million users across the 27-nation European Union, representing nearly a third of the bloc’s total population. This substantial user base makes Temu one of the biggest online retailers in Europe, competing directly with established players like Amazon and Alibaba’s international arm. The outcome of this inspection could have far-reaching implications for how Chinese companies operate within European regulatory frameworks, particularly regarding subsidy transparency and cooperation requirements.
Industry observers note that this case may set important precedents for future investigations into foreign subsidies affecting European markets. The commission’s decision to pursue this matter through formal inspection procedures demonstrates its commitment to ensuring fair competition within the single market. As Temu prepares its response to the allegations, stakeholders across the e-commerce sector will be watching closely to see how this situation develops and what broader regulatory changes might follow.
