The European Commission formally charged Temu with failing to cooperate during an unannounced raid on its Dublin headquarters in December 2025. The inspection was part of an investigation into potential violations of the EU’s Foreign Subsidies Regulation.

Regulators allege the PDD Holdings unit obstructed the probe by withholding access to business data, management information, and IT systems. This lack of cooperation reportedly prevented officials from reviewing evidence relevant to the investigation.

Temu denies the allegations and maintains it cooperated fully with the Commission. The retailer further stated it has not received any market-distorting foreign subsidies.