Exclusive-JD.com set to be hit with EU subsidy charges over Ceconomy deal, sources say
EU Scrutiny Intensifies Over JD.com's Ceconomy Acquisition
By Foo Yun Chee
Background of the Deal
BRUSSELS, July 22 (Reuters) - JD.com is set to be hit with formal subsidy charges over its $2.5 billion bid for German electronics retailer Ceconomy, people familiar with the matter said, a move that could force the Chinese e-commerce giant to offer substantial remedies.
Nature of the Charges
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 where regulators outline specific concerns, which must be addressed by companies or risk a veto on the deal.
Timeline and Expectations
The charges, the first under the FSR, will be sent in the coming days and could come as early as Wednesday, one of the people said.
Responses from Stakeholders
JD.com's Position
JD.com said the statement of grounds is a normal procedural step.
"We remain confident the transaction supports Europe's broader objectives around innovation and competitiveness. We continue to expect a positive conclusion of the process in the second half of 2026," the company said.
European Commission's Stance
The European Commission, which polices unfair foreign state aid, declined to comment.
Regulatory Context and Market Impact
Investigation Details
In May, it opened a full-scale investigation into the deal, 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.
Strategic Implications
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.
EU Measures Against Unfair Competition
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.
Growth in E-commerce Parcels
The number of e-commerce parcels arriving in the bloc has surged, reaching 5.8 billion in 2025 from 1.4 billion in 2022.
(Reporting by Foo Yun Chee, additional reporting by Philip Blenkinsop; Editing by Joe Bavier and Louise Heavens)
