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TP-Link Under Investigation Amid Security and Pricing Concerns
A recent report has emerged concerning a criminal antitrust investigation involving TP-Link, a major player in the wireless router market. This inquiry follows revelations in December regarding a potential ban on TP-Link products by US authorities, sparked by allegations of the company’s routers being exploited in significant cyberattacks attributed to the Chinese government. Established in 1996 in China, TP-Link announced a relocation of its headquarters to the United States in October 2024.
According to Bloomberg, TP-Link has effectively bifurcated its operations, with one segment operating in the United States and another remaining in China. However, the US-based entity currently under scrutiny by officials from the Justice and Commerce Departments reportedly maintains substantial activities in mainland China, raising concerns about the extent of integration between the two branches. An earlier Bloomberg article emphasized the persistent and significant presence of TP-Link in the Chinese market.
This criminal investigation coincides with an ongoing civil inquiry regarding TP-Link’s pricing strategies. Civil investigations have a less rigorous requirement for evidence compared to criminal cases, which could impose severe penalties, including hefty fines and possible imprisonment for involved individuals. Bloomberg highlighted that such investigations are often lengthy and may not always culminate in formal charges.
In response to these developments, TP-Link communicated to Bloomberg that it had not been approached by the Justice Department for inquiries but expressed a willingness to cooperate with any investigations. The company also refuted allegations of selling products at prices below their operational costs, reaffirming its commitment to transparency and fair pricing practices aimed at benefiting its customers.
We have reached out to TP-Link for further insights into the matter and will provide updates should new information become available.
Source
arstechnica.com