[Analysis] Will Europe allow JD.com to acquire MediaMarkt and Saturn?

The European Commission decides by October 23 whether JD.com may acquire the parent company of MediaMarkt and Saturn. To that end, Brussels is examining whether the Chinese e-commerce giant received state aid, and, above all, whether that aid could disrupt the European market. A new report estimates that the group received between 2 and 3.9 billion euros in Chinese subsidies and tax breaks over a three-year period alone.

Up to 3.9 billion euros in support

In late May, the European Commission launched an in-depth investigation into, among other things, potential preferential financing, tax breaks, and subsidies from China. Brussels is examining whether that support helped JD.com in its bid, as well as whether the government support could have an impact after the transaction. The acquisition thus represents a major test for the European Foreign Subsidies Regulation (FSR).