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Temu says it cooperated fully with EU probe, denies public subsidies
🇵🇾 Paraguay /Economy & Trade

Temu says it cooperated fully with EU probe, denies public subsidies

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

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  • Chinese e-commerce platform Temu has fully cooperated with the European Commission's investigation into alleged public subsidies, despite the EC's claims of non-collaboration.
  • Temu denies receiving market-distorting foreign subsidies, stating its operations are funded by sustained cash flows from its own activities.
  • The European Commission is investigating if Temu received subsidies that distort the EU's internal market and could impose a fine of up to 1% of its global turnover for non-cooperation.

Chinese e-commerce platform Temu stated on Saturday that it has "fully cooperated" with the European Commission's investigation into whether it received public subsidies that harm competitors in the EU. The European Executive had accused the company on Friday of not cooperating with the inspection initiated in December.

Temu cooperated fully and responded to all requests made by the Commission during the investigation. We will analyze and respond to the Statement of Objections, and we are confident that the Commission will reconsider its position.

— TemuIn a statement released in Dublin, Temu responded to the European Commission's accusations of non-collaboration.

Specifically, the EC argued that its officials were not provided with information on the organization and management of Temu's EU activities, its accounting records, or the IT systems used for its business in the single market. Temu explained in a statement released in Dublin that it "disagrees" with the Commission's preliminary findings outlined in its Statement of Objections.

Temu also denied 'categorically' having received foreign subsidies that distort the internal market, reiterating its commitment to 'fair competition.'

— TemuThe Chinese platform addressed concerns about market distortion and competition.

"Temu cooperated fully and responded to all requests made by the Commission during the investigation. We will analyze and respond to the Statement of Objections, and we are confident that the Commission will reconsider its position," the Chinese platform stated. Temu also "categorically denied" receiving foreign subsidies that distort the internal market, reiterating its commitment to "fair competition."

The company emphasized that it generates sufficient sustained cash flows from its own operational activities to fund its EU operations and does not rely on foreign subsidies for competitive advantage.

— TemuTemu explained its financial operations and denied needing external subsidies.

The company emphasized that it generates sufficient sustained cash flows from its own operational activities to fund its EU operations and does not rely on foreign subsidies for competitive advantage. Temu concluded by stating its commitment to continued cooperation with the Commission and compliance with all legal obligations under EU law. The EC has indicated that if it finds sufficient evidence of Temu's non-compliance, it could impose a fine of up to 1% of the company's global annual turnover.

We remain committed to continuing to cooperate with the Commission and to comply with all our legal obligations under European Union law.

— TemuTemu concluded its statement by reaffirming its commitment to legal compliance and cooperation.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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