France, May 28 -- The European Commission announced on Thursday that it is examining the transaction under the bloc's Foreign Subsidies Regulation - the first time a Chinese deal has been targeted under rules designed to prevent state-backed firms getting an unfair advantage in the EU's single market.

"JD.com may have received foreign subsidies distorting the EU internal market," the Commission said in a statement, citing possible support including "preferential financing, tax incentives and grants" potentially attributable to the Chinese government.

Beijing-based JD.com - short for Jingdong - rejected the concerns, stating the acquisition would not be funded by foreign subsidies from China or any other state.

"We consider the in-depth...