US Launches Criminal Antitrust Probe Into TP-Link’s Pricing Practices

Federal authorities are conducting a criminal antitrust investigation into TP-Link Systems Inc., a California-based router manufacturer with ties to China, over concerns related to its pricing strategies and its growing dominance in the US market, according to Bloomberg.

Sources familiar with the matter told Bloomberg that the Justice Department’s antitrust division is examining whether TP-Link engaged in predatory pricing — a tactic where products are sold below cost to drive competitors out of the market. Officials are also evaluating whether TP-Link’s expanding US market presence poses a broader national security risk. The probe, which began under President Joe Biden in late 2024, has continued into President Donald Trump’s administration.

According to Bloomberg, the Department of Commerce is separately investigating TP-Link to determine whether its connections to China present an unacceptable national security threat. Authorities have grown increasingly concerned about technology companies with deep foreign ties, particularly to China and Russia, as their footprint in the US market expands.

In addition to its pricing strategies, Justice Department officials are scrutinizing TP-Link’s corporate structure, per Bloomberg. Last year, the company divided into two entities: a US-based unit headquartered in Irvine, California, and a Chinese counterpart in Shenzhen. Despite the split, the American division reportedly maintains significant operations in mainland China.

TP-Link, in a statement, said it had not been contacted by the Justice Department but expressed readiness to cooperate if approached. The company rejected allegations of selling products below cost and emphasized its commitment to “fair pricing for our valued customers” and transparency in its business practices.

The Justice Department declined to comment on the ongoing investigation.

Shares of Netgear Inc., a key competitor, surged more than 10% following news of the investigation and remained up 8.3% as of midday trading in New York, Bloomberg reported.

While no charges have been filed against TP-Link or its executives, criminal antitrust investigations often take years and may or may not result in formal accusations. If violations are found, companies can face fines up to $100 million, and individuals involved could face prison sentences of up to 10 years along with $1 million in fines.

TP-Link routers, widely sold by major retailers like Amazon and Best Buy, have been flagged by US officials in the past. According to Bloomberg, devices made by TP-Link were among those exploited by Chinese state-sponsored hackers in major cyberattacks such as Volt Typhoon and Salt Typhoon. However, there is no evidence that TP-Link was complicit, and the company has stated it could not confirm how, or if, its products were affected.

Source: Bloomberg