Chinese security equipment company Nuctech is taking the European Commission to court over raids at its Dutch and Polish offices, asserting there was no evidence to support allegations of benefiting from illegal state support.
Nuctech, which manufactures body and luggage scanners for airports and ports in over 170 countries, filed an appeal with the Luxembourg-based General Court, Europe’s second-highest court. The appeal follows the European Commission’s raids two months ago on Nuctech’s EU premises.
The raids were based on suspicions that Nuctech might have received foreign subsidies that distort competition, breaching the EU’s Foreign Subsidies Regulation (FSR) introduced in 2023.
“Nuctech has appealed to the General Court of the EU against the European Commission’s decision to inspect Nuctech’s offices on suspicion of breaching the EU Foreign Subsidies Regulation,” the company stated. Nuctech has also requested that the General Court suspend the inspection to prevent potential harm to the company.
Nuctech, partly state-owned and blacklisted by the U.S. Bureau of Industry and Security in 2020, denied the EU allegations of receiving illegal state support. The company maintains that the European Commission’s actions are unfounded.
The European Commission, which serves as the EU’s competition enforcer, has initiated four investigations under the FSR to determine if subsidies have enabled Chinese companies to outbid EU rivals in procurement tenders. The Commission did not immediately respond to requests for comments on the matter.
The legal process in the General Court could take several years before a ruling is issued. In the meantime, Nuctech remains adamant that the raids and subsequent inspections are unjustified.
With Inputs From Reuters
