European Union competition regulators are reviewing whether JD.com’s proposed $2.5bn acquisition of Ceconomy may have involved foreign state backing.
According to a European Commission filing cited by Reuters, the EU watchdog has set 28 May as the deadline for its preliminary examination of the deal.
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That initial review will determine whether the transaction should move to an in-depth probe under the bloc’s foreign subsidies rules.
If concerns are not resolved during the first phase, the Commission may open a fuller investigation and could ask JD.com to offer remedies.
The assessment is being conducted under the EU’s Foreign Subsidies Regulation, which targets distortions to competition arising from support granted by non-EU states.
The deal is not being reviewed under the EU’s standard merger control system.
JD.com’s planned purchase of Ceconomy would expand the Chinese online retail group’s footprint beyond its domestic market by giving it access to Ceconomy’s consumer electronics businesses, including MediaMarkt and Saturn.
The transaction is also being scrutinised in Austria under foreign direct investment rules.
While the deal has already been cleared in several other jurisdictions, approval in Austria is still pending, leaving an important regulatory issue unsettled.
Italy has already approved the takeover, although its authorisation came with conditions.
In December, the country introduced strict measures concerning personal data protection linked to JD.com’s purchase of Ceconomy’s Italian business.
The ruling was issued under Italy’s “golden power” framework, which allows state intervention in deals involving assets considered strategically important.
Separately, JD.com expanded its European activity last month by launching its Joybuy online marketplace in six countries, including the UK.
The service is now operating in Belgium, France, Germany, Luxembourg, the Netherlands and the UK, selling categories such as technology, appliances, beauty products, household goods, groceries and everyday essentials.
