EU to probe JD.com’s Ceconomy takeover

On May 27, 2026, EU officials said the European Commission is expected to open an in-depth investigation into JD.com (9618.HK)’s proposed takeover of German electronics retailer Ceconomy. The planned review focuses on whether the transaction involves unfair foreign subsidies that could distort competition in the European Union.

The deal, valued at €2.2 billion according to recent headlines, would give Chinese e-commerce group JD.com control of Ceconomy, a major player in Europe’s consumer electronics retail market. The move to a deeper review signals that Brussels sees potential concerns that require a more detailed assessment before any clearance decision.

The investigation will be conducted under the EU’s foreign subsidies rules, which empower the European Commission to scrutinize support provided by non-EU states to companies investing or operating in the bloc. These rules allow the Commission to determine whether such backing distorts fair competition in the internal market.

Under this framework, the Commission can take measures that include blocking companies supported by non-EU state subsidies from participating in public procurement procedures, mergers and acquisitions. In the context of JD.com’s proposed Ceconomy takeover, the probe will focus on whether any foreign state support could give JD.com an undue advantage.

Brussels has opted for a full review that grants the Commission up to an additional 90 working days to examine the JD.com–Ceconomy deal. This extended timetable reflects the more complex nature of foreign subsidy assessments compared with standard merger control reviews.

During this period, regulators are expected to gather detailed information on JD.com’s financing and any links to non-EU state support. The longer review window introduces greater timing uncertainty for the completion of the transaction while the investigation is under way.

EU officials noted that, if the in-depth probe is formally launched, it would be the first time a Chinese acquisition faces a detailed examination under the bloc’s foreign subsidies regime. This would mark a significant application of the relatively new framework to a large cross-border deal involving a Chinese buyer.

The case comes amid heightened EU attention to foreign subsidies in investment and merger screening. Authorities are increasingly using the new tools to address concerns about potential competitive distortions arising from state-backed companies expanding within the EU market.

The planned in-depth investigation signals that regulatory clearance for JD.com’s takeover of Ceconomy is not assured and will depend on the Commission’s findings regarding foreign support. If the probe concludes that non-EU state subsidies distort competition, the Commission has the power to impose remedies or block the deal.

At this stage, EU officials have highlighted the extended review period and the unprecedented nature of the case under the foreign subsidies rules. The outcome will be closely watched as an indicator of how Brussels intends to apply this regime to large transactions involving non-EU, and particularly Chinese, acquirers.