EU Regulators Raid Temu's Dublin Headquarters Amid Foreign Subsidy Probe

Unannounced Inspection at Temu's European Hub

European Union regulators carried out an unannounced inspection at the Dublin headquarters of Chinese online retailer Temu on December 10, 2025. The raid forms a key part of an ongoing investigation into whether the fast-growing e-commerce platform has received foreign subsidies that could distort competition within the EU's internal market. The European Commission confirmed it conducted an 'unannounced inspection' at the premises of a company active in the e-commerce sector under the Foreign Subsidies Regulation (FSR), though it did not immediately name Temu.

Temu, a subsidiary of Chinese e-commerce giant PDD Holdings, has its European headquarters located at First Floor, 25 St Stephens Green, Dublin 2, Ireland. The company, known for its ultra-low prices and 'shop like a billionaire' tagline, has rapidly expanded its presence in the EU, attracting millions of users.

The Foreign Subsidies Regulation Under Scrutiny

The investigation falls under the EU's Foreign Subsidies Regulation (FSR), a new instrument that came into force in July 2023. The FSR aims to address a perceived regulatory gap by tackling distortions of competition caused by financial contributions from non-EU countries. Prior to the FSR, subsidies granted by non-EU governments often went unchecked, potentially giving recipient companies an unfair financial advantage in the EU market.

The European Commission's concerns center on whether Temu has benefited from Chinese state subsidies, such as interest-free loans, tax breaks, or preferential tax treatment, which could allow it to offer products at prices that European competitors cannot match. Breaches of the FSR can lead to significant penalties, including fines of up to 10% of the offending company's annual aggregated turnover, or even structural remedies.

Wider Context and Implications

This raid is seen as part of a broader effort by the EU to crack down on low-value e-commerce shipments and Chinese imports sold at exceptionally low prices. The EU is also planning to scrap a customs waiver on parcels valued under €150, which European retailers argue has given platforms like Temu and Shein an unfair advantage.

Temu has not yet issued an official statement regarding the raid, with reports indicating the company did not immediately respond to requests for comment. The outcome of this investigation could have significant implications for how non-EU companies, particularly those from China, operate within the European single market, as the EU seeks to ensure a level playing field for all businesses. Temu has also been under scrutiny regarding compliance with the Digital Services Act and concerns about illegal products on its platform.