Overview
- The European Commission opened an in-depth investigation into Chinese airport scanner maker Nuctech under the Foreign Subsidies Regulation after earlier site inspections in Poland and the Netherlands.
- EU officials said they have preliminary concerns that subsidies may have distorted competition for Nuctech’s threat-detection systems, and the company said it will cooperate with the inquiry.
- Separately, the Commission confirmed an unannounced inspection at the premises of a company active in e-commerce under the same regime but did not name the firm or specify the location.
- Temu’s Europe headquarters in Ireland were raided last week, according to a person familiar with the matter, with MLex first reporting the inspection and POLITICO corroborating the account.
- Breaches of the FSR can trigger remedies or fines of up to 10% of a company’s aggregated annual turnover, and the actions coincide with EU plans to remove the €150 low-value parcel duty exemption next year and ongoing DSA scrutiny of Temu, which reports 116 million average monthly EU users.