US investigates TP-Link for potential predatory pricing practices

In late 2024, the United States initiated a criminal antitrust investigation into TP-Link Systems Inc. This California-based router maker has been scrutinized for its pricing strategies and its connections to China, amid concerns that its growing market share might pose a national security threat. The inquiry, which began under the Biden administration, has continued into 2025, now operating under the Trump administration. Prosecutors are examining whether the company engaged in predatory pricing by selling routers below cost to eliminate competition and then possibly raising prices once competitors are weakened or driven out of the market. TP-Link's significant market presence in the U.S. earns it both accolades and criticism, as its products are regarded as budget-friendly options for consumers. However, some stakeholders worry that its dominance in the router market could undermine smaller domestic companies that do not raise national security concerns. The Justice Department has expressed particular interest in understanding TP-Link's corporate structure, since the company was originally founded in China in 1996 and has shifted its headquarters to the U.S. in late 2024. The company's structure reportedly includes significant operations still based in mainland China, which raises eyebrows about its intentions and long-term ramifications for domestic and international commerce. In addition to the criminal investigation, TP-Link is also facing a civil probe into its pricing practices. Civil investigations can lead to complaints with lower burdens of proof than their criminal counterparts, which could end in fines or imprisonment for individuals involved if any wrongdoing is established. While the criminal investigation can last years without necessarily ending with formal charges, its implications for TP-Link could be vast, with potential penalties reaching up to $100 million. As of the latest reports, TP-Link has publicly denied any wrongdoing and has pledged to cooperate with the investigation. It maintains that it does not sell products below cost and embodies a transparency policy in its business dealings. The ongoing scrutiny and investigations come at a time when American consumers are increasingly reliant on affordable technology solutions. Despite the political debates surrounding foreign relations, particularly regarding China, consumers continue to seek budget-friendly options like TP-Link's routers. The situation raises critical questions about the balance between maintaining global market competition and ensuring that national security considerations do not unduly stifle business opportunities for companies that may not pose significant threats. As the investigation unfolds, the implications for the router market and federal oversight will continue to evolve, influencing not only TP-Link's operations but the competitive landscape in which it operates.