Investigators from the US Departments of Commerce, Defense and Justice are investigating TP-Link, a Chinese router manufacturer, on national security grounds and may ban the company from selling routers in the US in 2025, the Wall Street Journal reported, citing people familiar with the matter.

A Reuters report shows that as early as August, two U.S. senators sent a letter to the Biden administration calling for an investigation of TP-Link and its affiliates, citing concerns that the company's products could be used in cyberattacks against the United States.

These fears are not unfounded.

In October, Microsoft revealed a sophisticated cyber attack called CovertNetwork-1658 that involved a large number of malware-infected devices, many of which were TP-Link routers. In addition, a critical vulnerability in the Archer C5400X tri-band gaming router (CVSS score 10.0), discovered in May 2024, allowed hackers to remotely execute code, further raising questions about the security of TP-Link products.

Market position and pricing strategy

TP-Link accounts for approximately 65% of the home and small business router market in the U.S., growing 5 percentage points in Q3 2024 alone.

According to Amazon, 11 of the top 20 best-selling routers are from TP-Link, including the top-selling AX3000 and AX1800 models. Low prices are considered to be one of the main factors attracting consumers. However, it has also led to discussions on the legal issue of whether TP-Link has achieved market monopoly by selling products below cost.

Response from TP-Link

In response to the allegations, a spokesman for TP-Link Systems stressed the company's willingness to cooperate with the U.S. government and its assurance that its security practices meet industry standards.

It is worth noting that TP-Link has undergone an internal restructuring to separate its China operations from its US operations, aiming to ease the pressure of regulatory scrutiny. However, this approach does not appear to have entirely dispelled US concerns.

If the United States finally decides to implement a ban, it will not only deal a major blow to TP-Link, but also affect the overall pattern of the US router market.

Shares of competitors such as Netgear have already risen significantly on the news, showing the market's high sensitivity to such changes.

For TP-Link, how to maintain its international reputation and continue to be competitive on a global scale will be a key challenge in the future.

* Disclaimer: This article is from the Internet, if there is any dispute, please contact customer service.