Temu Faces Turkish Office Inspection as Customs Changes and EU Scrutiny Mount

Istanbul inspection adds to pressure on Temu

Turkish competition authorities inspected Temu's Istanbul office early on Wednesday, January 21, adding another regulatory challenge for the Chinese shopping platform as Turkey prepares to change the customs rules that help support its low prices. The visit followed a December 2025 inspection of Temu's European headquarters in Dublin over possible unfair Chinese state subsidies.

Temu confirmed the Istanbul operation and said laptops and computers were taken. Turkey's Competition Authority, known as Rekabet Kurumu, disputed that account, saying the claim that equipment had been seized "does not reflect the truth." The disagreement concerns what happened during the visit, while both sides acknowledged that an inspection took place.

The authority described its action as an "on-site inspection" rather than a formal investigation. Such inspections can precede formal proceedings, allowing officials to examine a company's operations before deciding whether further action is needed. The authority declined to provide additional details, citing the need for the examination to proceed properly without interference.

A Temu spokesperson confirmed the operation and said the company would assist officials. The spokesperson stated:

We will cooperate fully with the Turkish authorities,

Temu said the visit happened unexpectedly and without prior notice. It also expressed confidence in its compliance operations in Turkey. The company's position is that it will cooperate while continuing to defend how it operates in the country.

The inspection comes at a sensitive moment for Temu, which is owned by Chinese ecommerce group PDD Holdings. Its rapid international growth, built around very low prices for products ranging from clothing to smartphones, has attracted shoppers while drawing scrutiny from regulators and established retailers.

Turkey changes the rules for small imports

Turkey's inspection follows a separate policy decision earlier in January to scrap its 30-euro allowance for imports free of customs duty. The change is scheduled to take effect in early February, directly affecting platforms that depend on exemptions for inexpensive parcels to keep prices low.

Turkish authorities cited protection of domestic production and concerns about health and safety standards for ecommerce imports. Their explanation connects the customs change to two issues: competition for businesses producing goods locally, and the standards applied to products arriving from abroad.

A customs duty is a charge imposed when goods enter a country. An exemption allows qualifying goods below a stated value to enter without that charge. Removing the exemption changes the cost of importing those goods, even when the item itself remains inexpensive.

Temu's model makes that change particularly relevant. The platform connects Chinese manufacturers directly with consumers overseas and ships products individually from China. Unlike traditional retailers that hold stock in local warehouses, it can avoid parts of the usual distribution chain and offer prices far below those of established competitors.

Turkey's authorities linked their decision to concerns that inexpensive imports can bypass quality controls that domestic producers must follow. For local businesses, the dispute is therefore about both price and the conditions under which products reach customers.

Temu confirmed that it registered a local entity and established its Istanbul office in 2025. That presence gives the company an operating base in Turkey and represents an effort to show commitment to the market and compliance with local business requirements. It is also the location now subject to competition officials' examination.

How the regulatory actions unfolded

Temu's latest difficulties span several months and involve different authorities. The sequence brings together competition inspections, product safety scrutiny and changes to the treatment of imported parcels.

• April 2023: Temu launched in the European Union.
• July 2025: European regulators announced preliminary findings that Temu was doing too little to prevent illegal products from being sold through its marketplace.
• November 2025: China's trade surplus exceeded $1 trillion for the first time.
• December 2025: EU investigators inspected Temu's European headquarters in Dublin under the Foreign Subsidies Regulation.
• January 2026: Turkey announced the removal of its 30-euro customs exemption for imported goods.
• January 21, 2026: Turkish competition authorities inspected Temu's Istanbul office.
• Early February 2026: Turkey's customs change is scheduled to take effect.

The actions address different parts of the business. Turkey's competition authority is examining its local operations, EU officials are examining possible foreign subsidies and marketplace safeguards, and customs changes affect the cost of bringing goods across borders.

What EU officials are examining in Dublin

European Union regulators carried out an unannounced inspection of Temu's Dublin headquarters in December under the bloc's Foreign Subsidies Regulation, often shortened to FSR. The legislation targets companies that may gain an unfair advantage from financial support supplied by a government outside the EU.

The European Commission's examination centers on whether Temu benefits from Chinese state subsidies. Possible forms of support include loans with no interest, preferential tax treatment and other financing supplied below normal market cost. Such support can reduce business expenses and give a company more room to charge low prices.

A European Commission spokesperson confirmed that officials had inspected an ecommerce company's premises under the regulation. The spokesperson said:

We can confirm that the Commission has carried out an unannounced inspection at the premises of a company active in the e-commerce sector in the EU, under the Foreign Subsidies Regulation,

Violations under the Foreign Subsidies Regulation can carry fines of up to 10% of a company's annual turnover. Turnover means the revenue a business receives from sales, so a penalty calculated this way can be substantial for a large international company.

Temu's expansion helps explain the attention it has attracted. Since launching in the EU in April 2023, it has reached approximately 116 million average monthly users, according to its latest transparency report. That measure describes the average number of users in a month rather than a total accumulated over its entire time in Europe.

Amazon has responded to Temu's success by introducing its own competing service, Amazon Haul. The move shows how Temu's pricing has affected competition among major platforms, alongside the complaints raised by traditional retailers.

Product safety is a separate European concern

Temu also faces scrutiny under the EU's Digital Services Act, which governs the operation of online platforms. In July, European regulators announced preliminary findings that the company was not doing enough to stop illegal products from being sold through its marketplace.

The examination covers product safety, intellectual property protection and consumer rights. Intellectual property includes rights attached to inventions, designs and brands. Consumer rights concern the protections people should receive when buying goods.

Temu's marketplace brings together thousands of outside sellers. That structure gives shoppers a broad selection, but it also places responsibility on the platform to oversee what those sellers offer. Regulators are examining whether its safeguards provide adequate protection.

The subsidies examination concerns the financial advantages a company may receive. The Digital Services Act proceeding concerns how its marketplace operates and how it deals with illegal products. Both can affect Temu's business, through different legal requirements.

Why small parcels matter to Temu's prices

Temu's slogan, "Shop like a billionaire," sums up its appeal: a large choice of products at prices far below those charged by many established retailers. Aggressive marketing and low prices have helped it attract tens of millions of shoppers worldwide during its international expansion.

Direct shipping from Chinese manufacturers is central to that proposition. Instead of moving goods through a conventional retail distribution network, Temu connects producers with individual customers abroad. Customs exemptions for parcels of low value have helped make those individual shipments economical.

The exemption is often called "de minimis," a term used for goods whose value falls below a country's customs threshold. For decades, such exemptions applied to inexpensive gifts. They later became an important part of international ecommerce as platforms arranged shipments to stay below the qualifying value.

The thresholds differ by market. Turkey's allowance was 30 euros. The EU has agreed to end its allowance for parcels worth less than 150 euros, equivalent to about $176. In the United States, the threshold stood at $800 and allowed large volumes of Chinese goods to enter without customs duties.

The US exemption faces elimination amid wider trade tensions. Its potential removal would threaten part of Temu's pricing advantage, requiring the company to raise prices or absorb substantial tariff costs. A tariff is a tax on imported goods, and absorbing it means the company bears the expense instead of passing it directly to the buyer.

European retailers have complained that customs exemptions give platforms such as Temu and its rival Shein an unfair advantage. Their concerns also extend to potentially subsidized prices. The EU's agreement to end its exemption responds to those competition complaints.

Turkey and the EU are therefore changing an important cost advantage for small international shipments. Turkey has given an early February start date; the EU decision is described as an agreement to remove its allowance. The Istanbul authority has not disclosed further details about its examination.

PDD faces a tax penalty and internal friction

PDD Holdings is dealing with separate regulatory difficulties in China alongside Temu's overseas challenges. Chinese tax authorities recently fined a PDD subsidiary approximately $14,000 for failing to submit required information about platform operators and employees for the third quarter of 2025.

The penalty is relatively small financially, but it adds another compliance issue for the group. The reporting requirement concerned information the subsidiary was expected to provide to tax authorities, making it a different matter from the competition inspection in Istanbul.

PDD Holdings shares nevertheless rose nearly 6% in trading before the market opened despite the Turkish inspection and the Chinese tax fine. Investors had anticipated more severe penalties, and the modest size of the fine brought relief. The rise reflected continued confidence in Temu's business model while the company faced growing regulatory pressure.

PDD has also faced friction over its relations with Chinese officials. The company reportedly dismissed a government relations team in Shanghai after an altercation between employees and regulators during an investigation into fraudulent deliveries on its domestic ecommerce platform.

The incident adds an internal management problem to the group's external regulatory challenges. PDD must handle official requirements in its home market while Temu responds to authorities in the countries where it has expanded.

China's export surge shapes the wider dispute

China's trade surplus exceeded $1 trillion for the first time in November. A trade surplus means a country sells more goods abroad than it buys from other countries. The increase came as Chinese manufacturers redirected goods toward markets outside the United States in response to tariffs.

Europe, Australia and Southeast Asia have received a surge of inexpensive Chinese goods, increasing competition for local businesses. Temu is one channel through which Chinese manufacturers can reach those consumers directly, bypassing traditional retail distribution networks.

Shoppers benefit from lower prices and a wider selection. Local businesses face pressure from imports while meeting domestic regulatory standards and labor costs. The arguments surrounding Temu bring those competing interests into the same debate.

The policy response now covers several parts of international commerce. Turkey and the EU have moved to remove customs advantages, while competition authorities examine possible market distortions. Product safety rules add another layer by focusing on what platforms allow sellers to offer.

The similar direction of these measures suggests growing agreement among governments about addressing unfair competition in international ecommerce. Authorities are trying to balance access to inexpensive goods with domestic production, consumer protection and fair conditions for businesses.

Temu's expansion illustrates why that balance has become more difficult. A platform can reach millions of consumers quickly, while its goods move through large numbers of individual parcels. Rules covering company conduct, imported goods and marketplace oversight each address a different part of that operation.

What changes could mean for shoppers and retailers

Temu says it will cooperate with Turkish authorities, while its local entity and Istanbul office show an effort to establish a stronger presence in the country. The immediate operational challenge is to respond to the inspection as Turkey's customs change approaches.

Removing exemptions changes the economics of shipping inexpensive items across borders. Temu may need to adjust its business model, accept lower margins or increase prices. A margin is the amount a company retains after paying the costs associated with a sale, so taking on extra customs charges leaves less money from each transaction.

Millions of shoppers have embraced Temu's bargain prices and extensive selection. Maintaining that appeal under more restrictive rules will require the company to manage additional costs while meeting the expectations of regulators in several markets.

Traditional retailers could receive some relief from the removal of customs exemptions. Charging imported parcels that previously entered free of duty reduces one of the structural advantages enjoyed by platforms shipping directly from China. Competition would still depend on other costs, including manufacturing, distribution and marketing.

Other platforms engaged in international online retail may face similar examinations as governments scrutinize the sector. The actions involving Temu are also likely to influence how authorities address market fairness, product safety and the treatment of inexpensive imported goods.

Consumers accustomed to very low prices may face higher costs as customs changes take effect. Governments must weigh those household costs against their stated goals of protecting local production and improving safety standards. For Temu, the central business challenge is adapting to those requirements while preserving the low prices that drove its growth.

The Bottom Line

• Turkish competition authorities inspected Temu's Istanbul office on January 21, calling the visit an on-site inspection rather than a formal investigation.
• Temu said laptops and computers were taken; the authority denied that equipment was seized.
• Temu pledged full cooperation and said it established its Turkish entity and Istanbul office in 2025.
• EU officials inspected Temu's Dublin headquarters in December 2025 over possible unfair foreign subsidies.
• Temu also faces EU scrutiny over safeguards against illegal products under the Digital Services Act.
• Turkey's removal of its 30-euro customs exemption is scheduled for early February. The EU has agreed to end its exemption for parcels below 150 euros.
• A PDD subsidiary received a tax fine of about $14,000 in China, while PDD shares rose nearly 6% before the market opened.
• Customs changes could increase costs for Temu and its shoppers while reducing a pricing advantage challenged by domestic retailers.