EU Sends Formal Objection Notice to PDD Holdings, Owner of Temu

The European Union has expanded its foreign subsidies investigation into Chinese e-commerce platform Temu. The European Commission has sent a formal objection notice to Temu's parent company, PDD Holdings Inc., and its Irish subsidiary, WhaleCo Technology Limited, over suspected obstruction of the review process. The Commission assesses that the company failed to provide the necessary information and documents in a timely manner or hindered inspection activities during the investigation. This is seen as a significant step under the EU's new regulations against foreign subsidies. The formal objection notice indicates that the process has been formalized, allowing the company to exercise its right to defense. PDD Holdings and WhaleCo Technology are expected to respond to the Commission's requests in the coming period and cooperate to avoid potential sanctions. The EU is particularly scrutinizing whether Chinese-based platforms gain unfair advantages from state support. The expansion of the investigation brings potential regulatory risks that could affect Temu's operations in the European market. This is not investment advice.