Overview
- The European Commission confirmed an unannounced Foreign Subsidies Regulation inspection at an EU e-commerce company, while reporters say Temu’s Dublin headquarters were dawn-raided last week, though officials did not name the target.
- Separately, the Commission opened an in-depth FSR investigation into Chinese security-scanner maker Nuctech after earlier inspections in Poland and the Netherlands.
- Officials said they have preliminary concerns that Nuctech may have received foreign subsidies that could distort the EU internal market.
- Under the FSR, cases can end in commitments or redressive measures, and breaches can draw fines of up to 10% of annual aggregated turnover.
- Temu remains under a parallel Digital Services Act probe after July’s preliminary findings that it was not doing enough to stop illegal products, and the EU plans to scrap the €150 low-value parcel customs exemption by the end of next year.