PDD Holdings (PDD), Temu's parent company, and its subsidiary WhaleCo Technology have received a Statement of Grounds from the European Commission over preliminary concerns that they obstructed an inspection at WhaleCo's premises in Ireland, the Commission said Friday.

The inspection, conducted in December 2025 under the EU Foreign Subsidies Regulation, was part of the Commission's investigation into whether Temu benefited from foreign subsidies that could distort competition in the European Union.

The Commission alleges Temu failed to provide requested information and records during the inspection, potentially breaching its procedural obligations.

PDD and WhaleCo now have an opportunity to respond before the Commission reaches a final decision.

The Commission said the underlying foreign subsidies investigation remains ongoing.