Temu Faces Fine of Up to 1% of Annual Turnover Due to Sabotage of Inspection
The European Commission has accused the Chinese company PDD and its subsidiary WhaleCo of obstructing an inspection at its Irish office. If violations are confirmed, Temu could face a fine of up to 1% of its total annual turnover. The unannounced inspection took place from December 2 to 5, 2025, under the EU Regulation on Foreign Subsidies, aimed at investigating potential subsidies from China that provide Temu with unfair competitive advantages in the European market. The European Commission reported that the company refused to cooperate with inspectors and did not provide the requested data, including information about its organizational structure and accounting books. The preliminary conclusion is not final, and Temu has the right to present its objections. The investigation into foreign subsidies is ongoing. Meanwhile, Temu's expansion in the EU market is raising concerns among officials. In 2024, the profits of the European division Whaleco Technology doubled to nearly $120 million, with official revenue reported at $1.7 billion, although actual figures are estimated to be around $10 billion. Previously, the EU had already fined Temu €200 million for violating online trading rules.
-- Price
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