Temu Faces a New Fine in the EU for Obstructing an Audit
The European Commission has accused the owner of the online marketplace Temu—the Chinese company PDD and its European subsidiary WhaleCo—of obstructing an inspection at its office in Ireland.
If the violations are confirmed, the company could face a fine of up to 1% of its global annual turnover.
The unannounced inspection took place in December 2025 as part of an investigation into whether Temu received subsidies from China that could have given the platform an unfair competitive advantage in the European market. According to the European Commission, the company failed to provide inspectors with information regarding its management structure, IT systems, and certain accounting and financial documents.
The regulator’s preliminary conclusion is not yet a final decision. Temu has the right to review the case materials and provide its explanations. Meanwhile, the investigation into the possible use of foreign subsidies is ongoing.
The EU’s increased scrutiny of Temu is linked to the platform’s rapid growth in Europe. According to official data, WhaleCo’s European division reported revenue of $1.7 billion in 2024, although experts estimate actual sales at approximately $10 billion.
Source: European Commission.
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