The European Commission has opened a full-scale investigation into JD.com's proposed takeover of German electronics retailer Ceconomy, the parent company of MediaMarktSaturn, under the Foreign Subsidies Regulation (FSR), as reported by Inside Retail Asia.
The FSR, which took effect in 2023, allows the EU to scrutinize acquisitions where foreign subsidies could distort the internal market. The Commission's concerns center on whether financial support received by JD from the Chinese government could give it an unfair advantage in the takeover, potentially harming competition in the European consumer electronics sector.
JD now faces a lengthy review process, with the Commission set to decide by late 2026 whether to clear the deal, impose conditions, or block it outright. The case marks one of the highest-profile tests of the EU's new powers to curb foreign subsidies, with implications for cross-border retail and technology acquisitions.