Chinese router maker TP-Link accused of undercutting prices in the US to hurt competitors

The U.S. Department of Justice has opened a criminal antitrust investigation into TP-Link Systems Inc., a router maker whose equipment currently dominates the U.S. market. Prosecutors are investigating whether the company engaged in predatory pricing — selling products below cost to drive competitors out of the market and then raising prices, Bloomberg reports.

A broad investigation into TP-Link began in late 2024 under the Biden administration, and continues under the Trump administration. It examines the structure of TP-Link and national security concerns surrounding its rapid growth in the U.S. market. The U.S. Department of Commerce is also investigating whether TP-Link's Chinese connections pose an unacceptable risk to U.S. telecommunications infrastructure.

The U.S. Department of Justice's antitrust division is concerned that TP-Link's low prices could have prevented smaller companies "not considered a threat to national security" from entering the market, one of the sources said. Criminal antitrust violations could result in fines of up to $100 million for the corporation, and officials could face up to 10 years in prison and an additional fine of up to $1 million.

In a statement, TP-Link said it "has not received any request from the Department of Justice" and "stands ready to fully cooperate with the investigation if such a request is made." The company denies the accusations of predatory pricing and emphasizes its "policy of transparency in business practices to ensure fair prices for our customers."

TP-Link was previously split into two divisions: a U.S. office in Irvine, California, and a Chinese office in Shenzhen. Before the reorganization, the company was the world's largest maker of consumer Wi-Fi equipment, according to IDC. Its routers are sold through Amazon, Best Buy and other major retailers, installed in many American households and small businesses.

US officials have also warned that Chinese-backed hackers used TP-Link and other brands of equipment in the 2023 Volt and Salt Typhoon attacks targeting critical US infrastructure. TP-Link says it has no evidence of deliberate interference with its devices.