This Week in Hospitality & Retail — Brussels (#20, 2026)
Commission fines Temu €200m under DSA; Arla/DMK/DOC merger cleared; in-depth probe into JD.com/CECONOMY deal; Council reviews tourism, industry; health claim on creatine refused.
May 24, 2026 to May 30, 2026
Commission fines Temu €200m under DSA; Arla/DMK/DOC merger cleared; in-depth probe into JD.com/CECONOMY deal; Council reviews tourism, industry; health claim on creatine refused.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission fines Temu €200 million for breaching the Digital Services Act
On 27 May 2026, the European Commission issued a €200 million fine to Temu for breaching the Digital Services Act (DSA). The Commission determined that Temu’s 2024 risk assessment failed to meet DSA standards, as it relied on general e-commerce sector risks rather than service-specific evidence, and underestimated the likelihood of EU consumers encountering illegal items. The investigation included a mystery shopping exercise, which found a high rate of non-compliant products, including chargers and baby toys with safety risks. Temu must submit an action plan by 28 August 2026 under Article 75 DSA; the European Board for Digital Services will issue an opinion within a month, after which the Commission will set the implementation period. Failure to comply may lead to additional penalties. The decision closes proceedings opened in October 2024.
Commission unconditionally approves Arla's acquisition of DMK and DOC
On 27 May 2026, the European Commission unconditionally approved Arla Foods amba’s proposed acquisition of Deutsches Milchkontor eG (DMK) and Drents Overijsselse Coöperatie Kaas U.A. (DOC) under the EU Merger Regulation (Case M.12115). The Commission investigated the impact on raw milk procurement in Germany and the supply of dairy products and whey-based ingredients across several Member States. It found no significant reduction of competition, noting Arla’s cooperative structure and persistent competition for private-label supply to retailers. The transaction is expected to have a limited effect on farmers and retailers due to multi-sourcing practices and the presence of alternative suppliers. The companies notified the merger on 17 April 2026; the decision followed a Phase I review.
Commission opens in-depth foreign subsidies investigation into JD.com’s proposed acquisition of CECONOMY
On 27 May 2026, the European Commission launched an in-depth investigation under the Foreign Subsidies Regulation (FSR) into JD.com’s proposed acquisition of CECONOMY AG (Case FS.100253). The Commission’s preliminary review identified possible distortions in the EU internal market linked to foreign subsidies, such as preferential financing and grants from China. Concerns include the potential for foreign subsidies to have enabled JD.com to outbid competitors and to affect competitive conditions post-acquisition. The transaction was notified on 17 April 2026; the Commission now has until 2 October 2026 to decide whether to accept commitments, block, or clear the deal.
Commission acts on delayed transposition of consumer and worker protection directives
On 27 May 2026, the European Commission sent letters of formal notice to several Member States for failing to transpose three EU directives. Twenty Member States were notified regarding Directive (EU) 2024/825 on Empowering Consumers for the Green Transition, which aims to improve transparency of green claims and product sustainability information. Eight Member States were addressed for not transposing Directive (EU) 2024/782, updating training for nurses, dental practitioners, and pharmacists. Ten Member States received notice for incomplete transposition of Directive (EU) 2024/869 on worker protection from lead and diisocyanates. All notified countries have two months to comply before the Commission may escalate proceedings.
EU Legislation (Official Journal)
Commission Regulation (EU) 2026/1118: Health claim on creatine and cognitive function refused
On 27 May 2026, Commission Regulation (EU) 2026/1118 was published, refusing authorisation of a health claim relating to creatine and improved cognitive function, pursuant to Regulation (EC) No 1924/2006. The application by Alzchem Trostberg GmbH was not supported by sufficient evidence according to EFSA’s opinion (EFSA-Q-2024-00106).
Commission Implementing Regulation (EU) 2026/1124: Suspension of inward processing for raw cane sugar used for white sugar
Commission Implementing Regulation (EU) 2026/1124 of 26 May 2026 suspends inward processing arrangements for raw cane sugar (CN codes 1701 13 90 and 1701 14 90) to obtain white sugar (CN code 1701 99 10) until 27 May 2027. The measure responds to increased imports and market disturbance, allowing a 30-day transitional period for existing authorisations.
Commission Implementing Regulation (EU) 2026/1101: Adjustments to plant import checks
Commission Implementing Regulation (EU) 2026/1101 amends Implementing Regulation (EU) 2022/2389, adjusting minimum frequency rates for identity and physical checks on certain consignments of plants, plant products, and other objects entering the EU. The changes are based on import data and interception statistics from 2022 to early 2025.
Commission Implementing Decision (EU) 2026/1186: Avian influenza emergency measures updated
Commission Implementing Decision (EU) 2026/1186 of 28 May 2026 amends Implementing Decision (EU) 2023/2447 following new highly pathogenic avian influenza outbreaks in France, the Netherlands, and Poland. The decision updates restricted zones and the duration of related control measures.
Council Decision (EU) 2026/1172: EU signs International Coffee Agreement 2022
Council Decision (EU) 2026/1172 of 24 February 2026, published on 29 May, authorises the signing of the International Coffee Agreement 2022. The new agreement replaces the 2007 version and updates voting and contributions, integrating the private sector and civil society into the International Coffee Organization.
Commission Implementing Regulation (EU) 2026/1126: Malta extends use of Wofasteril® SC super biocidal product
Commission Implementing Decision (EU) 2026/1126 permits the Malta Competition and Consumer Affairs Authority to extend, until 23 June 2027, the use of Wofasteril® SC super for PPE decontamination at Mater Dei Hospital’s High Degree Isolation Unit, under Regulation (EU) No 528/2012.
EU Council
Competitiveness Council adopts tourism conclusions and debates industry legislation
On 28 May 2026, the Competitiveness Council (Internal Market and Industry) adopted conclusions on tourism and conducted political debates on the industrial accelerator act, the 28th regime, and the impact of the Middle East crisis on tourism.
EP Committee Work
IMCO Committee Chair responds to Temu DSA fine
On 28 May 2026, Anna Cavazzini (Greens/EFA, DE), Chair of the Committee on the Internal Market and Consumer Protection (IMCO), issued a press statement on the Commission’s €200 million DSA fine against Temu. Cavazzini noted the case as evidence of the DSA’s ability to enforce consumer protection but pointed to delays in implementation and called for further tools and reforms to strengthen market surveillance.
Petitions Committee fact-finding mission to Guadeloupe and Saint Martin
A delegation of nine MEPs from the Committee on Petitions (PETI), led by Chair Bogdan Rzońca (ECR, Poland), concluded a three-day visit to Guadeloupe and Saint Martin, addressing petitions on sargassum influx management and the 'octroi de mer' dock dues tax. Meetings included exchanges with local authorities, business representatives, and civil society. The findings will be compiled into a report for committee discussion.
What We're Reading This Week
- Heat dome over Europe scorches UK, France, Spain: Record-breaking temperatures disrupt daily life across the UK, France, and Spain as a persistent heat dome intensifies summer heatwaves.
