European Commission Raids Temu's Dublin Headquarters in Foreign Subsidy Probe
The European Commission conducted an unannounced inspection at the European headquarters of Temu, located on St Stephen's Green in Dublin, as part of an investigation under the Foreign Subsidies Regulation (FSR). This move forms part of a broader probe into foreign subsidies that may give companies a competitive advantage.
Temu, which has approximately 116 million monthly users in the European Union, is currently under scrutiny by the Commission in two separate investigations: one under the FSR and another under the Digital Services Act concerning the sale of illegal content. The recent raid specifically relates to the FSR inquiry.
The Foreign Subsidies Regulation targets companies believed to benefit unfairly from government subsidies, amid growing trade tensions between the EU and China. This follows prior actions such as tariffs reaching up to 38% on certain Chinese carmakers after subsidy findings.
Preliminary findings from the Digital Services Act investigation published in July indicated that Temu had not done enough to prevent illegal products on its platform. Temu responded by stating that it vets sellers carefully, monitors listings proactively, and conducts takedowns when necessary.
Additionally, trade data reveal that Germany imported more goods from China than it exported, while China's global exports in the first eleven months of the year exceeded its imports by over $1 trillion, with a significant portion directed to the European Union.
