Due to Sabotage of the Inspection: The EU May Fine Temu Again
31 July 19:08
The European Commission has accused the owner of the online marketplace Temu—the Chinese company PDD and its European subsidiary WhaleCo—of obstructing an inspection at its Irish office. If the violations are confirmed, the platform faces a fine of up to 1% of its total annual turnover. This was reported by Delo.ua, citing an official statement from the European Commission, as reported by "Komersant Ukrainian".
The unannounced inspection took place from December 2 to 5, 2025, at WhaleCo’s office in Ireland under the EU Foreign Subsidies Regulation. The regulators’ goal was to gather evidence in an investigation into possible subsidies from China that give Temu an unfair competitive advantage in the European market.
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According to the European Commission, the company refused to actively cooperate with the inspectors and did not provide the basic data requested:
- information on the company’s organizational structure and management of its operations in the EU;
- data on the IT tools and systems used;
- specific accounting books and financial records.
Sanctions and Reasons for the EU’s Increased Scrutiny
The preliminary conclusion that has been made public is not yet a final decision by the European Commission. Temu has the right to review the case materials and submit its objections or explanations. Meanwhile, the investigation into the foreign subsidies themselves continues in parallel.
Temu’s rapid expansion in the EU market has long been a source of concern for European officials. In 2024, the European division of Whaleco Technology doubled its pre-tax profit in EU countries—to nearly $120 million—with an official staff of only eight people. The company’s official revenue reached $1.7 billion, although actual figures are estimated at around $10 billion.
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