The European Commission has hit pause on JD.com’s planned acquisition of Ceconomy — the German parent company of MediaWorld, MediaMarkt and Saturn — after raising concerns that the Chinese e‑commerce giant may have benefited from state-backed subsidies that could distort competition in the EU market.According to the Commission, early findings suggest JD.com may have received preferential loans, tax incentives and other public support from Beijing, potentially enabling it to outbid rivals for Ceconomy and later leverage unfair advantages such as below‑market pricing. The investigation will run until 2 October, during which the deal remains frozen. JD.com insists the takeover is funded solely through internal resources and bank financing, not government money.The move marks the first major use of the EU’s new regulation targeting foreign state aid — a sign of Brussels’ growing assertiveness toward Chinese industrial policy and its impact on European retail and manufacturing.The case has already sparked unease among competitors: Ceconomy operates over 1,000 electronics stores across Europe, including 145 MediaWorld outlets in Italy, and rivals fear the merger could open the door to a flood of low‑priced Chinese electronics across the continent.The scrutiny also fits a wider pattern: Chinese companies are increasingly shifting from suppliers to owners of Western brands, raising strategic questions for Europe’s retail and manufacturing sectors.