TP-Link, a prominent router manufacturer, is under criminal antitrust investigation for potentially engaging in predatory pricing practices, according to a recent Bloomberg report. This scrutiny adds to the existing concerns about the company’s connections to China.
The US government has launched a criminal antitrust probe into the pricing tactics of TP-Link Systems Inc., a California-based firm with Chinese links, which currently holds a significant share of the American router market. Sources indicate that the investigation goes beyond pricing strategies, examining whether the company’s increasing US market presence poses a national security risk. This examination began during the Biden administration in late 2024 and has persisted into President Donald Trump’s tenure.
Prosecutors from the Justice Department are exploring allegations that TP-Link might be involved in predatory pricing, a tactic where goods are sold below cost to capture market share, with the intention of raising prices after weakening or eliminating competition.
TP-Link has gained substantial market share in the US, often being recognized for offering budget-friendly routers. The Justice Department is concerned that TP-Link’s pricing methods might undermine other companies’ ability to compete in the US market, especially those that do not pose a national security risk. Additionally, there is an ongoing examination of TP-Link’s corporate structure.
(Source: Ars Technica)
