The European Commission has formally charged Temu's parent company PDD Holdings and its Irish subsidiary Whaleco with obstructing an unannounced inspection conducted in December 2025, according to a weekend press release.
The probe, carried out under the Foreign Subsidies Regulation, sought evidence of potentially distortive foreign subsidies. The commission said Temu failed to provide requested information on its E.U. operations, IT systems and business records, preventing evidence gathering.
Temu said it fully cooperated with the Commission's audit and clarified that its E.U. business is completely self-funded, Reuters reported.
The online retailer added that steady internal cash flow drives its growth, eliminating any need for foreign subsidies to compete in the European market.