TP-Link, a router brand you may find on your WiFi network list, is currently under investigation by the U.S. government for potential antitrust violations.
As reported by Bloomberg, the Department of Justice (DOJ) is examining TP-Link Systems, Inc. over claims that it offered routers at prices below production costs—a practice known as predatory pricing—to secure an unfair market advantage. TP-Link stated to Bloomberg that it has not received any official inquiry from the DOJ but indicated its intention to cooperate and denied any involvement in predatory practices.
At present, TP-Link routers are priced from approximately $50 for entry-level models to about $400 for premium gaming variants, according to Mashable. In contrast, most internet service providers charge customers between $10 and $15 monthly for router rentals; however, CNET, a sister site to Mashable, has discovered that purchasing your own router and modem is often the more cost-effective option in the long run.
The investigation into TP-Link occurs amid a wider effort by U.S. regulators to combat anti-competitive conduct. Recently, Google faced setbacks in two significant antitrust lawsuits: one linked to its dominance in online advertising and another regarding its control of the search engine market, primarily through its Chrome browser. (Google is currently appealing the advertising case and is in the remedy phase of the search case.) At the same time, the Federal Trade Commission (FTC) is suing Meta on accusations that its acquisitions of Instagram and WhatsApp were aimed at suppressing competition. Globally, regulators in Japan and the European Union are also increasing antitrust measures against tech behemoths like Google, Apple, and Meta.
Under both the Biden and Trump administrations, the DOJ has ramped up efforts to hold major tech firms accountable for anti-competitive behaviors. “Vigorous antitrust enforcement is essential to protect free markets and ensure that we all receive the benefits of competition,” noted Emma Burnham, director of the DOJ’s Antitrust Division’s Criminal Enforcement Section, in a speech earlier this year.
However, TP-Link faces challenges beyond just antitrust issues. The California-based company, which has affiliations with China, is also encountering a distinct national security investigation. A December report from The Wall Street Journal indicated that the Departments of Commerce, Defense, and Justice are looking into whether TP-Link’s routers, which allegedly have security flaws, have been exploited by Chinese cyberattackers.
Although U.S. officials have not substantiated claims that TP-Link intentionally facilitated cyberattacks, the Journal mentions that the government is contemplating more extreme measures—potentially including a ban on TP-Link devices. Regardless of the eventual outcomes, TP-Link’s ties to China have drawn heightened scrutiny from U.S. authorities.