The European Commission has preliminarily found that Temu breached its duty to actively cooperate during unannounced inspections at the Dublin offices of its subsidiary WhaleCo in early December 2025, part of an investigation into potentially market-distorting foreign subsidies.
The Commission said Temu failed to provide information on the organisation and management of its EU activities, including relevant IT systems, business books, and records during the raids carried out between 2 and 5 December 2025. Temu rejected the findings, saying it fully complied with all requests and categorically denied receiving unfair foreign subsidies. A finding of obstruction could result in a penalty of up to one percent of the company's total turnover.
The online marketplace, which has 130 million users across the 27-nation bloc, was fined 200 million euros in May for selling unsafe products.