EU opens first Foreign Subsidies probe into a Chinese deal over JD.com's €2.2 billion Ceconomy takeover
The European Commission has opened an investigation under its Foreign Subsidies Regulation into Chinese e-commerce giant JD.com's €2.2 billion proposed takeover of German electronics retailer Ceconomy -- the first time the rules, designed to prevent state-backed firms gaining an unfair edge in the EU single market, have been applied to a Chinese deal. The Commission said JD.com "may have received foreign subsidies distorting the EU internal market," citing possible "preferential financing, tax incentives and grants" potentially attributable to the Chinese government; JD.com rejected the concerns and said the deal would be financed "by bank loans and cash from our ordinary activities." Ceconomy owns MediaMarkt, Saturn and MediaWorld -- more than 1,000 stores across Germany, Italy, Spain and Austria -- and holds a 22 percent stake in France's Fnac Darty; the Commission was notified on 17 April and has 90 working days, until 2 October 2026, to decide.
The European Commission opened an investigation on Thursday under the bloc's Foreign Subsidies Regulation into JD.com's proposed €2.2 billion takeover of German electronics retailer Ceconomy, RFI reported -- the first time a Chinese deal has been targeted under rules designed to prevent state-backed firms gaining an unfair advantage in the EU single market. "JD.com may have received foreign subsidies distorting the EU internal market," the Commission said in a statement, citing possible support including "preferential financing, tax incentives and grants" potentially attributable to the Chinese government.
Beijing-based JD.com -- short for Jingdong, the third-largest online retailer in China after Alibaba and Temu -- rejected the concerns. The acquisition would not be funded by foreign subsidies from China or any other state, the company said in a statement to AFP. "We consider the in-depth review of a transaction of this scale to be a normal procedural step," it said, adding that the Ceconomy deal would be financed "by bank loans and cash from our ordinary activities."
Ceconomy owns the MediaMarkt, Saturn and MediaWorld chains, with more than a thousand stores across Europe, including in Germany, Italy, Spain and Austria. It is also the second-largest shareholder of French group Fnac Darty, holding a 22 percent stake -- the angle that has intensified scrutiny of the deal in Paris. French Economy Minister Roland Lescure announced in November that JD.com had accepted conditions set by Paris for that stake, pledging to remain a "sleeping" shareholder without intervening in Fnac Darty's governance or management. In a press release dated 26 March, JD.com said it "has already received all necessary merger control clearances as well as foreign investment clearances in France." Fnac Darty's majority shareholder, Czech billionaire Daniel Kretinsky, who owns 28.5 percent of the capital, launched a public takeover bid earlier this year to take control of the group.
The probe lands as JD.com pushes to expand internationally to offset slowing domestic consumption and fierce price competition at home. In March, the group launched its Joybuy delivery platform in six European countries, including France, pitching rapid delivery as a challenge to Amazon. Under the Foreign Subsidies Regulation, the European Commission can impose fines, suspend tenders or block takeovers by state-funded firms. The Commission said it was officially notified about the Ceconomy acquisition on 17 April and "now has 90 working days, until 2 October 2026, to take a decision."