The €2.5 billion acquisition with which the Chinese e-commerce giant JD.com aims to take over the German Ceconomy is entering a decisive phase of the European review. The EU Commission has formalized its objections as part of the foreign subsidies investigation, opening a dialogue with the Chinese company, which rejects the accusations and reiterates its confidence in a clearance by the second half of 2026.
THE STATEMENT OF OBJECTIONS
The European Commission has sent JD.com a statement of objections as part of the in-depth investigation launched on the proposed acquisition of Ceconomy AG. This is a formal step provided for by the Foreign Subsidies Regulation, through which Brussels informs the companies concerned in writing of the objections raised during the investigation. Sending the document does not anticipate the final decision but allows JD.com to submit comments, consult the Commission’s file, and possibly propose commitments to address the identified concerns. The provisional conclusion of the procedure remains set for 2 October 2026.
BRUSSELS’ CONCERNS
The in-depth investigation was opened last May to verify whether JD.com has benefited from foreign subsidies that could distort competition in the European internal market. According to the Commission’s preliminary assessments, the company may have received financing on favorable terms, tax incentives, and public contributions granted by entities potentially linked to the People’s Republic of China. For Brussels, these instruments could have strengthened the competitive position of the deal and the entity resulting from the merger, with possible negative effects on the single market.
JD.COM’S RESPONSE
The Chinese company has described the statement of objections as “a normal procedural step” in the process foreseen by European legislation and confirmed its intention to cooperate with the Commission. “We remain confident that the transaction aligns with Europe’s broader goals on innovation and competitiveness. We continue to expect a positive conclusion of the procedure in the second half of 2026,” the company stated ahead of Brussels’ official announcement.
A position already anticipated at the beginning of July in an interview with Adnkronos, where a group spokesperson ruled out any use of public subsidies to finance the deal. “The proposed acquisition of Ceconomy AG by JD.com will not be financed by any foreign subsidy granted by China or any other non-EU state, but is instead financed by external private bank debt and liquidity available from ordinary business activities. JD.com has not received foreign subsidies related to the transaction that could distort competition in the EU,” the spokesperson said, adding that the group would continue to cooperate with the Commission throughout the procedure.
THE SIGNIFICANCE OF THE DEAL
The acquisition would allow JD.com to accelerate its European expansion by leveraging Ceconomy, one of the continent’s leading consumer electronics retailers. The German group controls the MediaMarkt and Saturn chains and operates in Italy under the MediaWorld brand, which counts 144 stores, about 5,000 employees, and a turnover of €2.4 billion in fiscal year 2024.
JD.com is China’s third-largest e-commerce platform, behind Alibaba and Temu, and last March launched the Joybuy platform in Europe after developing a network of about 60 warehouses distributed across the United Kingdom, Germany, France, the Netherlands, Belgium, and Luxembourg. The deal would therefore represent a strategic step to strengthen the Chinese group’s presence in the European electronics retail market.
PREVIOUS CLEARANCES AND THE GOLDEN POWER
Before the current phase of the European investigation, the deal had already obtained clearance from the German Federal Ministry for Economic Affairs and Energy. In Italy, instead, Golden Power was exercised, with authorization subject to specific conditions, including data protection.
In the interview given to Adnkronos, JD.com assured compliance with the GDPR, specifying that European customers’ data remain within data centers located in the Netherlands and that Ceconomy will continue to operate as an independent company in Europe, with no planned changes to workforce, contracts, or company locations. The group also indicated as the main contributions to the deal advanced technologies, omnichannel retail expertise, and logistics and storage capabilities.
