The European Commission (EC) is examining whether JD.com may have received foreign subsidies that could distort the European Union (EU) internal market in its proposed acquisition of German retailer Ceconomy.

It has opened an “in-depth” review of the deal under the Foreign Subsidies Regulation (FSR) after a preliminary assessment raised concerns about support the Chinese group may have obtained.

JD.com operates retail businesses and an online e-commerce marketplace in China. Ceconomy sells consumer electronics and home appliances through physical stores and online channels.

The commission said its initial findings point to possible subsidies, including preferential financing, tax incentives and grants from entities that may be attributable to China.

It is concerned that these measures may have enabled JD.com to offer terms that could have affected the negotiations over the takeover.

The regulator also said the deal could allow the combined company to follow investment and business strategies that may affect competition in the EU internal market.

During the investigation, the commission will assess whether the suspected subsidies influenced the acquisition process, including by allowing JD.com to submit a high offer and supporting Ceconomy’s business and growth plans with its technology and logistics capabilities.

It will also examine whether the merged group’s position in the market could be strengthened in a way that harms competition after the transaction.

The deal was notified to the commission on 17 April 2026. The commission has 90 working days, until 2 October 2026, to take a decision.

The FSR law started to apply in July 2023. It gives the commission powers to address market distortions linked to foreign subsidies while keeping the EU open to trade and investment.

Under the rules, companies must notify deals when at least one party is established in the EU and has turnover of at least €500m in the bloc, and when the parties together received a minimum of €50m in foreign financial contributions from third countries in the previous three years.