The European Commission (EC) has sent a Statement of Grounds to Chinese e-commerce group JD.com, marking a formal stage in its “in-depth” foreign subsidies probe into the company’s planned takeover of German retailer Ceconomy.
The EU launched the “in-depth” investigation in May to determine whether JD.com had received foreign subsidies capable of distorting competition within the EU’s internal market.
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The inquiry followed an initial assessment that flagged concerns over financial support the Chinese company may have received, prompting regulators to escalate their scrutiny under the bloc’s Foreign Subsidies Regulation (FSR).
Through the Statement of Grounds, the EC formally sets out its objections in writing to the parties involved.
Regulators stressed that issuing the document does not predetermine how the investigation will ultimately conclude.
JD.com will now be able to respond to the objections raised and review the EC’s case file.
Under the FSR, companies also have the option of proposing commitments as the process moves forward.
According to the commission, its concerns centre on whether JD.com benefited from foreign subsidies – including preferential financing, tax breaks and grants potentially linked to Chinese state entities – that could bolster the merged company’s market position and harm competition within the EU once the deal is finalised.
It has set 2 October 2026 as the provisional deadline for completing its assessment.
The takeover process began in July last year, when Ceconomy entered discussions with JD.com regarding a potential voluntary public offer.
By November 2025, the Italian Government had granted conditional clearance for the acquisition, which was valued at $2.5bn.
That approval, issued under Italy’s “golden power” framework – legislation permitting the state to block or impose conditions on transactions involving assets considered strategically important, whether domestic or foreign – came with specific requirements attached.
The following month, Italian authorities added further conditions focused on personal data protection as part of their approval of JD.com’s acquisition of Ceconomy’s operations in Italy.
JD.com’s regulatory challenges are not confined to the EU.
In the UK, the Conservative Party reportedly urged the government last month to investigate the company, raising concerns that its expansion in Britain could pose an unfair competitive threat to high street retailers.
