EU regulators have raided Temu’s European headquarters in Dublin as part of an escalating investigation into whether the fast-growing ecommerce platform has benefited from unfair state support from China.
According to Reuters, the European Commission launched the inspection “over concerns that Temu may have received foreign subsidies that distort competition in the EU.”
The surprise raid was carried out on 10 December under the Foreign Subsidies Regulation (FSR), the bloc’s newest trade-enforcement tool designed to curb the market impact of non-EU companies receiving state aid. The Financial Times reported that the Commission’s action “forms part of a wider crackdown on Chinese imports sold at ultra-low prices”, particularly across digital marketplaces.
The inspection adds pressure to a company already under scrutiny. The Guardian noted that Temu is “also being examined under the Digital Services Act,” which governs online marketplaces, product safety, and transparency obligations in the EU.
A tougher stance on platforms whose low prices influence the broader retail ecosystem.
If regulators conclude that Temu benefited from non-market advantages, the Commission could impose corrective measures, including fines or structural remedies that impact the flow of low-priced consumer goods into Europe.
For sporting goods companies, the implications are significant. Ultra-low prices from platforms like Temu create competitive pressure that affects margins across apparel, footwear, and accessories. At the same time, the EU is increasingly scrutinising import dependencies and supply-chain transparency, whilst new enforcement actions may fundamentally reshape the rules governing platforms that import high volumes of low-value goods into the European market.
