cross-posted from: https://mander.xyz/post/52771375

The European Union has opened an investigation into Chinese e-commerce giant JD.com’s proposed €2.2 billion takeover of German electronics retailer Ceconomy, which is the second-largest shareholder of French group Fnac Darty. Regulators suspect the bid may involve Chinese subsidies.

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The European Commission announced on Thursday that it is examining the transaction under the bloc’s Foreign Subsidies Regulation – the first time a Chinese deal has been targeted under rules designed to prevent state-backed firms getting an unfair advantage in the EU’s 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 – rejected the concerns, stating the acquisition would not be funded by foreign subsidies from China or any other state.

“We consider the in-depth review of a transaction of this scale to be a normal procedural step,” JD.com said in a statement to French press agency AFP, adding that its acquisition of Ceconomy would be financed “by bank loans and cash from our ordinary activities”.

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Ceconomy owns the MediaMarkt, Saturn and MediaWorld chains, with more than a thousand stores across Europe, including in Germany, Italy, Spain and Austria.

The probe has also intensified scrutiny in France, where Ceconomy holds a 22 percent stake in Fnac Darty, a major entertainment and electronics retailer.

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Under the Foreign Subsidies Regulation, the European Commission can impose fines, suspend tenders or block takeovers by state-funded firms.

The commission says 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”.

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