Summary: TP-Link Systems, a leading router brand in the United States, is currently under criminal antitrust investigation by the Department of Justice. Reports indicate that the company’s pricing tactics and potential national security issues will be scrutinized by both the DoJ and the Commerce Department.
TP-Link’s routers are popular partly due to their cost-effectiveness. Authorities at the DoJ are looking into whether the company has engaged in predatory pricing tactics to undermine competitors and seize control of the US market, as reported by Bloomberg. This investigation began in 2024 during President Biden’s administration and is ongoing under the Trump administration.
Additionally, the Commerce Department is probing TP-Link to assess whether its connections to China represent a security risk. In December, it was reported that a Commerce Department office had subpoenaed TP-Link, with potential router bans in the US stemming from national security concerns.
Founded in 1996 by brothers Zhao Jianjun and Zhao Jiaxing, TP-Link established TP-Link USA in 2008 to handle marketing and service operations in North America. However, the ownership, management, and supply chain remain under the control of the Shenzhen-based parent company.
In 2024, TP-Link USA finalized a merger with TP-Link’s non-Chinese entities, creating TP-Link Systems Inc., headquartered in Irvine, California. This “organizational separation” delineates distinct shareholding structures, management, R&D, production, marketing, and support teams for each division.
Regulatory and legislative bodies are still assessing whether this structural division sufficiently protects TP-Link’s US operations from Chinese legal authority, which underpins the ongoing antitrust and national security investigations.
With approximately 65% of the US market for home and small business routers, TP-Link is a dominant player. Twelve of the twenty best-selling routers on Amazon are TP-Link models, including the top two: the TP-Link AX1800 WiFi 6 Router V4 and the TP-Link Dual-Band AX3000 Wi-Fi 6 Router Archer AX55.
In October 2024, Microsoft uncovered an intricate network of compromised devices that Chinese cybercriminals exploited to execute highly evasive password spray attacks against Microsoft Azure clients. This network, referred to as CovertNetwork-1658, had been pilfering credentials since August 2023 and involved a botnet of thousands of small office and home office (SOHO) routers, cameras, and other Internet-connected devices, with TP-Link routers constituting the majority.
There have been recurring reports of security vulnerabilities in TP-Link routers. For instance, a severe flaw with a CVSS score of 10.0 was detected in the Archer C5400X tri-band gaming router in May 2024. Moreover, in 2023, reports surfaced that Chinese state actors were infecting TP-Link routers with custom malicious firmware, shortly after the US government revealed Mirai Botnet operators were utilizing TP-Link routers to execute DDoS assaults.
