The European Commission has sent JD.com, Inc. (‘JD.com’) a Statement of Grounds as part of its ongoing in-depth foreign subsidies investigation into the proposed acquisition of CECONOMY AG (‘CECONOMY‘). The issuing of a Statement of Grounds is a formal step in an investigation under the Foreign Subsidies Regulation (‘FSR’) where the Commission informs the companies concerned in writing of the objections raised against them. The sending of a Statement of Grounds does not prejudge the outcome of the investigation. JD.com now has the opportunity to reply to the Commission’s Statement of Grounds and to consult the Commission’s case file. The FSR foresees the possibility for companies to offer commitments.
In May 2026, the Commission opened an in-depth investigation to further assess whether JD.com may have been granted foreign subsidies that could distort the EU internal market. The Commission has conducted a constructive investigation and has concerns that JD.com may have received foreign subsidies, in the form of preferential financing, tax incentives and grants provided by entities possibly attributable to the People’s Republic of China (‘PRC’), which may improve the competitive position of the merged entity and lead to a negative impact in the internal market, with respect to its activities after the transaction. The provisional deadline for the Commission’s review is 2 October 2026.
JD.com belongs to a group operating a retail business and an online e-commerce marketplace in the PRC. CECONOMY is a German retail company operating in the brick-and-mortar and online retail businesses, specialised in the field of consumer electronics and home appliances.
