BRUSSELS (dpa-AFX) - The European Commission is conducting a more detailed investigation into the planned acquisition of MediaMarktSaturn, Europe's largest electronics retailer, by Chinese e-commerce giant JD.com. 'The preliminary investigation suggests that JD.com may have received foreign subsidies that could distort the EU internal market,' the Brussels-based authority announced.

The Commission expressed concerns that funds granted to JD.com, which may be attributable to the Chinese state, could have distorted the bidding process by enabling JD.com to submit a higher offer. These potential subsidies include preferential financing, tax incentives, and grants.

Furthermore, the Commission holds preliminary concerns that 'the transaction could enable the merged entity to pursue investment and business strategies that could affect the competitive landscape within the EU internal market.'

The EU Commission now has until October 2 to reach a final decision. It emphasized that the outcome of the probe remains open.

JD.com launched a takeover bid last summer and secured a majority of Ceconomy shares a few months later. Authorities in several countries are currently reviewing the acquisition, with decisions from Germany, Spain, and Austria still pending. Corporate sources indicated that full regulatory clearance is expected in the second half of the year.

Europe's largest electronics retailer

MediaMarktSaturn is Europe's largest electronics retailer and the fourth-largest online shop in Germany, trailing only Amazon, Otto, and Zalando. The retail group Ceconomy, which currently owns the MediaMarktSaturn Retail Group, was formed in 2017 as a spin-off from Metro.

With annual revenue of nearly 159 billion US dollars (2024), JD.com is the largest Chinese retail group according to the EHI retail institute and ranks among the top ten globally. The group, which employs approximately 570,000 people, also operates in sectors such as technology, logistics, and healthcare. Its presence in Germany has been limited to date; however, JD.com launched its online shop Joybuy in March of this year./wea/DP/stk