The European Commission has launched an in-depth investigation into the planned acquisition of Ceconomy, the parent company of MediaMarkt and Saturn, by the Chinese e-commerce giant JD, citing competitive concerns. The Brussels authorities announced on Thursday that the probe is underway.
The primary reason for the scrutiny is the suspicion that JD may have received third-country subsidies that could potentially distort the EU internal market. These subsidies reportedly include favorable financing, tax incentives, and grants provided by entities potentially linked to the Chinese state.
According to the Commission, there are specific concerns that these alleged third-country subsidies might have influenced the negotiation process surrounding the takeover of Ceconomy, skewing the terms. Furthermore, the EU is concerned that the resulting merged company might adopt investment and business strategies that could negatively impact the competitive conditions within the EU internal market.
The investigation falls under the regulation concerning third-country subsidies, which has been in force since July 2023 and allows the Commission to examine distortions caused by such aid. Companies must notify the Commission regarding mergers when they exceed defined thresholds for turnover and subsidies. The Commission has until October 2, 2026, to make a final decision regarding the matter, noting that the review process will be conducted “result-open”.
