Review №26 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- European Commission Says Temu May Have Obstructed Investigation
- 12 Shanghai Ride-Hailing Services Fined $3.7 Million
- Electronic Licensing Introduced to Combat 'Ghost' Restaurants
- M&A Review Delegation System Expanded
European Commission Says Temu May Have Obstructed Investigation
The European Commission has issued a Statement of Grounds to PDD Holdings, the owner of online marketplace Temu, and its subsidiary WhaleCo, expressing preliminary concerns that the companies may have obstructed an inspection carried out under the Foreign Subsidies Regulation (FSR).
The Commission conducted an unannounced inspection of PDD and WhaleCo's premises in December 2025. It now alleges that Temu failed to provide requested information about its business operations, IT tools and systems, as well as specific reports and records. If confirmed, such conduct would constitute a breach of the company's procedural obligations under Article 14 of the FSR.
The Statement of Grounds sets out the Commission's preliminary findings and is a procedural step before any formal decision. The obstruction investigation is being conducted separately from, and in parallel with, the Commission's ongoing substantive investigation into whether Temu received foreign subsidies that distort competition in the EU internal market.
"Not providing the information prevented the Commission from reviewing sources of information that could be relevant for its investigation," the Commission said.
Temu rejected the Commission's allegations, stating that it fully cooperated with the inspection and complied with all information requests. The company also denied violating the FSR.
Temu has around 130 million users across the EU's 27 member states, representing nearly one-third of the bloc's population, making it one of Europe's largest e-commerce platforms.
12 Shanghai Ride-Hailing Services Fined $3.7 Million
As part of a broader regulatory campaign targeting ride-hailing platforms, an inter-agency task force conducted regulatory interviews with 12 companies and imposed a first round of fines totaling more than $3.7 million.
The violations involved operating without the required licenses, or using unlicensed drivers or vehicles. Most of the violations were attributed to industry leader Didi.
Source: WeChat
Electronic Licensing Introduced to Combat 'Ghost' Restaurants
China's State Administration for Market Regulation (SAMR) is introducing electronic business licenses for merchants and restaurants operating on online platforms as part of its campaign against violations in the food delivery sector.
The new policy is intended to modernize regulatory oversight through automated verification while creating a collaborative governance framework involving regulators, digital platforms, delivery providers, and consumers. Electronic licensing is expected to reduce verification time and improve enforcement efficiency.
The initiative follows SAMR's April 17 decision to fine seven major food delivery platforms for failing to prevent so-called "ghost restaurants"—vendors operating without the required food service licenses. The $570 million penalty was the largest ever imposed on digital platforms since China's Food Safety Law was revised in 2015.
Source: SAMR
M&A Review Delegation System Expanded
China expanded its delegated merger review system on August 1, 2026, implementing a decision adopted in March after a three-year pilot program.
In addition to the market regulators in Guangdong, Shaanxi, Beijing, Shanghai, and Chongqing, authorities in Sichuan, Liaoning, and Zhejiang have now been authorized to review certain simplified merger filings. The expansion is expected to reduce the workload of the central regulator while improving the speed and efficiency of merger reviews.
Since the pilot program began, delegated authorities have processed notifications efficiently, with an average of 16.28 days to accept filings and 17.52 days to complete reviews.
Source: SAMR
