EU regulators have raided the Dublin headquarters of Chinese online retailer Temu, investigating potential breaches of foreign subsidy rules. The unannounced inspection targets concerns that the company may have received state support giving it an unfair competitive advantage in the European market.
Temu—which entered the European Union-wide market in 2023 and now counts roughly 116 million monthly customers/users across the bloc—has already faced scrutiny over alleged failures to prevent the sale of illegal products.
Temu is under investigation as part of a mammoth arsenal of torts of law(fare)—combined into the Digital Services Act (DSA)—that forces the world’s largest tech firms to do more online to protect European consumers and police content.
Preliminary findings by the Commission suggested a high risk for consumers encountering dangerous items, such as baby toys and small electronic devices, prompting the investigation. Companies found in breach of DSA rules may face fines of up to 6% of global annual turnover and be forced to make changes to address violations.
The raid coincides with broader EU measures against Chinese e-commerce. Starting January 1st, 2026, Brussels will end the customs exemption for parcels valued under €150, directly affecting platforms like Temu, Shein, and AliExpress. The move, long planned by the Commission, aims to curb ultra-low-price imports that distort competition and create tensions with European retailers and manufacturers.
