Shares of JD.com Inc Adr (NASDAQ:JD) fell about 2% on Tuesday following media reports that the European Commission is preparing to open an in-depth investigation into the Chinese ecommerce group’s proposed €2.2 billion acquisition of German electronics retailer Ceconomy.
According to reporting attributed to the Financial Times, Brussels plans to announce the probe later this week under the EU’s foreign subsidies framework. That move would mark the first instance in which a Chinese takeover is examined in detail under these regulations.
JD.com first tabled its offer for Ceconomy in July. Ceconomy operates more than 1,000 stores across Europe under the MediaMarkt and Saturn banners. The transaction had been expected to complete in the first half of 2026.
An in-depth investigation triggers an additional 90 working days for the Commission to determine whether the deal involves unfair subsidies. The EU’s foreign subsidy rules provide the Commission the authority to block companies that receive subsidies from foreign governments from participating in public procurement and from completing mergers and acquisitions.
While the regulations are not explicitly aimed at any single country, they have been applied in cases involving Chinese companies amid concerns that excess production from the world’s largest manufacturer could distort European industry.
JD.com ranks among China’s largest online retailers, competing with the likes of Alibaba and Meituan, and operates logistics hubs in the UK, France and Germany. The timing of the probe coincides with a forthcoming debate among EU commissioners over the bloc’s overall posture toward China.
EU competition chief Teresa Ribera has previously signalled that the bloc intends to broaden subsidy investigations into foreign investors as part of efforts to address what it perceives as unfair competitive practices. The potential deep dive by Brussels adds regulatory uncertainty to a deal that was already subject to a multistep review process.
Context and implications
The Commission’s decision to pursue an in-depth review under the foreign subsidies framework would buy authorities more time to assess financial links between the bidder and any state support. For market participants, the extension means a longer timeline before a final decision and increased scrutiny of foreign investment in key European retail assets.
Market reaction
News of the pending probe coincided with the 2% decline in JD.com’s shares on Tuesday as investors reacted to the prospect of a prolonged regulatory review.