The European Commission has issued a Statement of Grounds to PDD Holdings and its Irish subsidiary WhaleCo, alleging that Temu obstructed a Foreign Subsidies Regulation inspection. The inspection took place at WhaleCo's Dublin premises from 2 to 5 December 2025 as part of a broader investigation into whether Temu received distortive foreign subsidies. The Commission's preliminary view is that Temu failed to actively cooperate, not meeting basic requests about its European organisation, IT systems, and business records, which prevented examination of relevant sources. Under the FSR, a fine of up to 1% of total turnover can be imposed for such obstruction. Temu disagrees with the findings, stating it cooperated fully and denies receiving distortive subsidies, while the process runs alongside the main investigation and follows a separate €200 million penalty under the Digital Services Act in May.
PDD Holdings Inc.EU alleges Temu obstructed FSR inspection, risking fine up to 1% of turnover.