STORY
The European Commission has opened an in-depth investigation into JD.com’s proposed $2.5 billion acquisition of German electronics retailer Ceconomy. Brussels said it had preliminary concerns that the Chinese company may have benefited from foreign subsidies that could distort competition in the EU internal market.
The inquiry is being carried out under the EU’s Foreign Subsidies Regulation, which is designed to stop non-EU state support from giving companies an unfair advantage in mergers, public procurement or other market activity inside the bloc. The Commission is examining whether JD.com received preferential financing, tax benefits or grants linked to Chinese state-backed bodies.
JD.com has denied that the transaction is being supported by improper subsidies and says the deal is funded through private bank debt and internal cash. The Commission has set a decision deadline of 2 October, making the case an important test of Brussels’ increasingly assertive approach to foreign subsidies and Chinese investment.