EU Commission Raids Temu's Dublin Headquarters Amid Multiple Investigations
The European Commission conducted an unannounced inspection last week at Temu's Dublin headquarters as part of an investigation under the Foreign Subsidies Regulation (FSR). The inspection aimed to assess whether Temu, an online retailer with approximately 116 million monthly users in the EU, had benefited from government subsidies that could have given it a competitive advantage within the European market. The Commission confirmed the probe and contacted Temu for comment, but no further publicity followed the raid.
In addition to the Foreign Subsidies Regulation investigation, Temu is also under scrutiny under the Digital Services Act (DSA) for its role in preventing illegal products from being sold on its platform. Preliminary findings from July suggested the company had taken insufficient action in this regard. Temu has stated that it vets sellers, monitors activity, and carries out product takedowns to ensure compliance.
Temu's Dublin office is located at St Stephen's Green, close to landmarks such as the Shelbourne Hotel and Cantor Fitzgerald. Both the FSR and DSA probes signify increased regulatory attention to the company.
The investigation into Temu takes place amid a broader context of trade dynamics between the EU and China. Notably, Germany imported more from China than it exported, with China’s exports exceeding imports by over $1 trillion in the first eleven months of the year. The EU experienced a trade deficit of over $350 billion with China last year, underscoring ongoing concerns over trade imbalances and market competitiveness.
