Temu’s European headquarters in Dublin were raided by EU regulators last week on concerns about potential Chinese state subsidies granted to the online retailer, a subsidiary of China’s ecommerce giant PDD Holdings, a person familiar with the matter said on Wednesday.

Temu did not immediately respond to a request for comment.

The raid comes as the EU plans to crack down on low-value ecommerce shipments that have flooded into the bloc thanks to a customs waiver on parcels worth less than 150 euros, which European retailers said gave platforms like Temu and Shein an unfair advantage. The EU executive plans to scrap that waiver by the end of next year.

The European Commission’s Foreign Subsidies Regulation (FSR) takes aim at unfair foreign aid for companies with the goal of reining in comp

See Full Page