The Statement of Grounds follows an unannounced inspection under the Foreign Subsidies Regulation (‘FSR’), carried out between 2 and 5 December 2025. The Commission conducted the inspections following indications that Temu may have received foreign subsidies that distort the internal market. The aim of the inspection was to gather evidence in support of its investigation into potentially distortive foreign subsidies granted to Temu. According to Article 9 of the FSR, the Commission has the power to initiate, on its own initiative, investigations into suspected distortive foreign subsidies. Prior to adopting a decision under Article 17(1) FSR, the Commission sends the company its Statement of Grounds setting out the grounds on which it intends to adopt its decision.