The European Commission has accused online retail platform Temu of failing to cooperate fully during an investigation linked to the European Union’s Foreign Subsidies Regulation. The allegations were announced on Friday and relate to an inspection carried out in Ireland in late 2025.
According to the Commission, Temu did not meet its obligation to actively assist investigators during an unannounced inspection conducted in December 2025. The inspection was part of a wider investigation into whether the company may have received foreign subsidies that could distort competition within the European Union’s internal market.
The Temu EU Investigation Claims have drawn attention across Europe because the case involves one of the world’s fastest-growing online shopping platforms. The European Commission said the purpose of the inspection was to gather evidence and better understand the company’s operations within the EU.
Officials stated that investigators requested information about the structure and management of Temu’s European activities. They also sought details regarding the information technology systems used by the company and records related to its operations in EU member states.
According to the Commission, Temu did not provide all the requested information during the inspection. Authorities claim the company failed to fully respond to requests concerning its organizational structure, management systems, and specific business records connected to its European activities.
The Commission said these actions may represent a breach of obligations under EU rules that require companies to cooperate during investigations. However, officials emphasized that the latest allegations are separate from the broader subsidy inquiry and do not determine the final outcome of that investigation.
The Temu EU Investigation Claims come as European regulators increase scrutiny of major international companies operating within the bloc. The Foreign Subsidies Regulation was introduced to ensure fair competition and prevent companies from gaining an unfair advantage through support provided by governments outside the European Union.
Under the regulation, the Commission has the authority to investigate companies suspected of benefiting from foreign financial support that could affect competition in the European market. Investigators can request documents, conduct inspections, and gather evidence to determine whether such subsidies exist.
Temu strongly rejected the accusations made by the Commission. In a statement, the company said it fully cooperated during the inspection and complied with all requests made by investigators.
The company also denied receiving any foreign subsidies that could distort competition within the EU market. Temu stated that it has acted in accordance with legal requirements and disagrees with the Commission’s assessment of its conduct during the inspection process.
The dispute marks the latest challenge for the online retailer as regulators around the world pay closer attention to large digital commerce platforms. Temu has expanded rapidly in many countries by offering a wide range of products at competitive prices, attracting millions of customers.
European authorities have increasingly focused on issues involving competition, consumer protection, and market fairness in the digital economy. As a result, major technology and e-commerce companies often face detailed reviews of their business practices.
The European Commission noted that its announcement does not represent a final finding against Temu. The investigation into possible foreign subsidies remains ongoing, and officials have not yet reached a conclusion on whether any market distortions occurred.
Legal procedures will continue as investigators review evidence and examine information collected during the inquiry. The Commission may decide on further actions depending on the outcome of its assessment.
For now, the Temu EU Investigation Claims remain allegations rather than proven violations. Both sides continue to defend their positions, with regulators arguing that cooperation requirements were not fully met and the company insisting that it complied with every request.
The case is expected to remain under close observation as the European Union continues efforts to enforce competition rules and ensure a level playing field for businesses operating across the bloc. Future findings could have broader implications for how international companies engage with EU regulatory investigations.
