Exclusive-JD.com set to be hit with EU subsidy charges over Ceconomy deal, sources say

By Foo Yun Chee

BRUSSELS, July 22 (Reuters) - JD.com is set to be hit with formal subsidy charges over its $2.5 billion bid for German electronics retailer Ceconomy, people familiar with the matter said, a move that could force the Chinese e-commerce giant to offer substantial remedies.

The charges, known as a statement of grounds under the Foreign Subsidies Regulation, are similar to a statement of objections or charge sheet under EU merger rules where regulators outline specific concerns, which must be addressed by companies or risk a veto on the deal.

The charges, the first under the FSR, will be sent in the coming days and could come as early as Wednesday, one of the people said.

JD.com said the statement of grounds is a normal procedural step.

"We remain confident the transaction supports Europe's broader objectives around innovation and competitiveness. We continue to expect a positive conclusion of the process in the second half of 2026," the company said.

The European Commission, which polices unfair foreign state aid, declined to comment.

In May, it opened a full-scale investigation into the deal, warning that JD.com may be receiving preferential financing, tax incentives and grants from the Chinese government that may have helped the company offer a higher price for Ceconomy.

The acquisition will allow one of China's largest retailers to expand outside its home market via Ceconomy-owned electronic products retailers MediaMarkt and Saturn.

The EU charges will come after the July 1 introduction of a €3 customs duty on previously exempt low-value packages and ahead of a forthcoming handling fee as the European Union seeks to curb what it calls unfair competition from largely Chinese retailers such as Shein, Temu and AliExpress.

The number of e-commerce parcels arriving in the bloc has surged, reaching 5.8 billion in 2025 from 1.4 billion in 2022.

(Reporting by Foo Yun Chee, additional reporting by Philip Blenkinsop; Editing by Joe Bavier and Louise Heavens)