European Commission Conducts Unannounced Inspection at Temu's Dublin Headquarters Amid Subsidy Investigation
The European Commission has carried out an unannounced inspection at Temu's Dublin headquarters as part of an investigation under the Foreign Subsidies Regulation into possible government subsidies that may have given the company a competitive advantage. Temu, which has about 116 million monthly users in the EU, is also subject to a separate probe under the Digital Services Act, examining illegal content on its platform.
The raid took place at Temu's office located on St Stephen's Green in Dublin, near landmarks such as the Shelbourne hotel and Cantor Fitzgerald. The Foreign Subsidies Regulation allows for such unannounced inspections to target firms suspected of benefiting from government subsidies.
Preliminary findings cited by the European Commission in July indicated that Temu was not sufficiently preventing the sale of illegal products on its platform. The Digital Services Act investigation into Temu started last year due to these concerns.
Temu maintains that it vets sellers thoroughly, monitors product listings, and conducts takedowns to prevent unsafe products and ensure compliance with regulations.
This investigation occurs within the broader context of EU-China trade relations and regulatory dynamics, including Germany's rising imports from China and the EU's imposition last year of tariffs up to 38% on Chinese car makers following a WTO-led inquiry.
