JD.com, a Chinese e-commerce giant, is set to be hit with formal subsidy charges over its $2.5 billion bid for German electronics retailer Ceconomy, according to people familiar with the matter. The charges, known as a statement of grounds under the Foreign Subsidies Regulation, are similar to a statement of objections or charge sheet under EU merger rules.
EU Investigation
The European Commission, which polices unfair foreign state aid, opened a full-scale investigation into the deal in May, warning that JD.com may be receiving preferential financing, tax incentives, and grants from the Chinese government that may have helped the company offer a higher price for Ceconomy. The acquisition will allow one of China’s largest retailers to expand outside its home market via Ceconomy-owned electronic products retailers MediaMarkt and Saturn.
The EU charges will come after the July 1 introduction of a €3 customs duty on previously exempt low-value packages and ahead of a forthcoming handling fee as the European Union seeks to curb what it calls unfair competition from largely Chinese retailers such as Shein, Temu, and AliExpress. The number of e-commerce parcels arriving in the bloc has surged, reaching 5.8 billion in 2025 from 1.4 billion in 2022.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
