THE DUBLIN OFFICES of e-commerce giant Temu were reportedly raided last week by EU regulators acting on concerns of distortions from foreign subsidies.

The European Commission has confirmed that it “has carried out an unannounced inspection at the premises of a company active in the e-commerce sector in the EU, under the Foreign Subsidies Regulation”.

The Commission did not name the company in its statement, but news agency Reuters has reported that a source revealed Temu as the company that was inspected.

Temu is an online marketplace known for having extremely low prices that was launched in 2022 by PDD Holdings, the parent company of Chinese enterprise Pinduoduo.

With aggressive marketing, Temu has amassed hundreds of millions of users and is among the world’s most-visited shopping sites.

Its European headquarters in Dublin are being investigated by the European Commission’s Foreign Subsidies Regulation (FSR), which aims to ensure a level playing field for all companies operating in the single market.

The Commission can impose fines of up to 10% of a company’s annual aggregated turnover for breaches.

Temu did not immediately respond to requests for comment.

China has recently increased its volume of cheap exports to Europe as a response to US president Donald Trump’s imposition of sky-high tariffs.

The cost of imports from China is down 6% year-on-year, according to the European Central Bank.

The euro’s rise in value against the Chinese yuan is likely an additional incentive for the country’s focus on the bloc.

While this generally means lower prices for Irish consumers, European companies are left trying to compete against them. 

A customs waiver on goods worth less than €150 is currently in effect in the bloc but could be scrapped next year due to the pressure it’s putting on European companies to compete.

Last year, Temu was investigated by the Commission under the Digital Services Act. Initial findings suggested that Temu is not doing enough to prevent the sale of illegal products through its platform.