Brussels – The European Commission, acting as the EU’s competition watchdog, has examined JD.com’s latest concessions aimed at easing concerns that the Chinese e‑commerce giant received unfair foreign subsidies for its planned $2.5 billion purchase of Germany’s Ceconomy. Sources familiar with the matter told Reuters that rivals remain dissatisfied, urging JD.com to strengthen its commitments before the Commission reaches a decision by Oct. 23.
What the concessions entail
According to the sources, JD.com has offered to grant Ceconomy access to its European logistics network and technology platforms at market‑based rates. The proposal also promises that smaller competitors will be able to use the same services on fair, non‑discriminatory terms. The aim is to demonstrate that the deal will not distort competition in the European electronics market.
Commission’s lingering concerns
The EU antitrust authority is reviewing the transaction under the Foreign Subsidies Regulation, a framework designed to block acquisitions that benefit from state aid that could give the buyer an unfair advantage. In a preliminary review released in May, the Commission flagged that JD.com may have benefited from preferential financing, tax incentives and grants that could be linked to Chinese government entities.
In July, the Commission outlined specific reservations and asked JD.com to address them. The latest set of concessions was presented to the Commission earlier this week, but the watchdog has not yet indicated whether the measures fully satisfy its concerns.
Rival backlash
Industry insiders say that competitors view the concessions as insufficient. They argue that merely offering market‑rate access does not fully mitigate the risk that JD.com’s deep pockets and potential state backing could tilt the market in its favor. The criticism underscores the pressure JD.com faces to demonstrate a level playing field for all players in the European electronics sector.
Potential impact on the deal
If the Commission finds the concessions inadequate, JD.com could be required to make further adjustments or risk the deal being blocked. The deadline for a final decision is Oct. 23, giving the parties a narrow window to negotiate any additional remedies.
JD.com declined to comment on the negative feedback from rivals, stating only that it remains committed to complying with EU competition rules.
Broader context
The scrutiny of JD.com’s bid reflects a growing vigilance by European regulators toward large foreign acquisitions, especially those involving firms that may benefit from state support. The outcome of this case could set a precedent for how the EU applies its Foreign Subsidies Regulation to future cross‑border deals.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
