JD.com faces formal charges from the European Union regarding its $2.5 billion bid for German retailer Ceconomy. The European Commission issued a statement of grounds outlining concerns over unfair Chinese state subsidies. These benefits potentially include preferential financing and tax incentives that allowed for a higher bid price.
The move follows a full-scale investigation opened in May under the Foreign Subsidies Regulation. JD.com must now offer significant remedies or risk a total veto of the transaction.
JD.com describes the charges as a normal procedural step. The company remains confident the deal will close in the second half of 2026. The Commission set an October 2 deadline for its final decision.