EU approves JD.com’s acquisition of MediaMarktSaturn with conditions

JD.com and Ceconomy, the parent company of MediaMarkt and Saturn, announced that all conditions for the offer have now been met and the transaction is expected to be finalized in the coming days.

The Commission found that JD.com had received subsidies from China in the form of preferential financing, tax breaks, and grants. It expressed concern that these funds could be used to put competitors under pressure through an “aggressive pricing policy.”

To prevent such cross-subsidization, the companies are now obligated to ensure that all internal transactions between JD.com and Ceconomy, particularly financing, occur under market-standard conditions. JD.com must also offer its warehousing, logistics, and technology services to other retailers on the same terms as Ceconomy. These commitments, proposed by the companies during the antitrust review, are binding for ten years.

China had previously threatened retaliatory measures in August if the EU proceeded with the investigation. Beijing prohibited organizations and individuals from assisting the EU with certain information requests in China, accusing Brussels of demanding extensive and unnecessary information.

An EU Commission spokesperson defended the investigation, emphasizing the importance of fair competition and that subsidies from companies outside the EU are now also subject to scrutiny.

EU Competition Commissioner Teresa Ribera welcomed the “constructive approach” of the companies involved, stating that consumers benefit from a competitive retail and e-commerce sector where all companies compete on equal terms.

Authorities in several countries, including Germany, also reviewed the acquisition and ultimately gave their approval, subject to conditions. In Germany, these conditions are intended to protect customer personal data and grant the German government strong monitoring and control rights, including the ability to revoke the approval in case of violations.

MediaMarktSaturn is Europe’s largest electronics retailer and the fourth-largest online shop in Germany after Amazon, Otto, and Zalando. Ceconomy, which includes the MediaMarktSaturn Retail Group, was spun off from Metro in 2017.

JD.com, with an annual revenue of nearly $159 billion (as of 2024), is China’s largest retailer and one of the world’s ten largest. The group, employing approximately 570,000 people, operates in technology, logistics, and healthcare, with a currently limited presence in Germany, having launched the online shop Joybuy in March of this year.

JD.com stated that the EU Commission’s decision will not affect its business model or strategy and will provide a basis for accelerated growth. The company reaffirmed its commitment to protecting key foundations for employees, brands, and markets.