The European Commission has opened an in-depth investigation into JD.com’s proposed acquisition of German electronics retailer CECONOMY, citing preliminary concerns that foreign subsidies may distort competition in the EU’s internal market.
JD.com is part of a group that runs a retail business and an e-commerce marketplace in China, while CECONOMY operates both online and high-street retail and focuses on consumer electronics and home appliances.
The Commission said in a statement on Thursday that its initial review indicated JD.com may have received foreign subsidies — including preferential financing, tax incentives and grants — from entities that could be attributable to the Chinese state.
It stated that these potential subsidies may have enabled JD.com to offer conditions that could have distorted the negotiation process for buying CECONOMY.
The Commission also raised concerns that the deal could allow the combined business to pursue investment and business strategies that could affect competitive conditions in the EU internal market.
What the EU’s foreign subsidies rules cover
The investigation is being carried out under the EU’s Foreign Subsidies Regulation, which applies from 13 July 2023 and allows the Commission to act where subsidies granted by non-EU countries distort competition inside the bloc, the Commission said.
In its in-depth review, the Commission will assess whether any subsidies distorted the acquisition process — including by enabling JD.com to offer a high price and support CECONOMY’s activities and growth plan using JD.com’s technology and logistics — and whether such support could improve the merged company’s competitive position in a way that negatively affects the EU market after the deal.
The transaction was notified to the Commission on 17 April 2026 and the Commission has 90 working days, until 2 October 2026, to reach a decision, it said, adding that opening an in-depth investigation does not prejudge the outcome.
CECONOMY’s main brands include MediaMarkt, MediaWorld and Saturn, which operate online and in physical stores across several EU member states.
