(Reuters) - U.S. authorities have recently initiated a criminal antitrust investigation into TP-Link Systems Inc., a significant player in the router manufacturing sector. This inquiry, as reported by Bloomberg News, focuses not only on the company's pricing strategies but also on the potential national security risks stemming from its expanding market share within the United States.

According to sources familiar with the situation, prosecutors from the U.S. Department of Justice (DOJ) are scrutinizing TP-Link for engaging in predatory pricing practices. These practices could undermine the competitive landscape, particularly affecting other companies that do not pose similar national security threats. The DOJ's investigation reflects a growing concern over the implications of foreign-made technology on American interests.

The DOJ and TP-Link have not yet provided comments regarding the investigation, leaving many questions unanswered about the allegations and the potential consequences for the company.

Concerns regarding the security of Chinese-made technology products, particularly routers, have been prevalent among U.S. lawmakers and national security officials. There is a fear that these devices could be exploited by Beijing to conduct cyber attacks on American institutions, including government bodies and private businesses. In light of these concerns, some lawmakers have previously called for investigations into TP-Link and have urged U.S. citizens to remove any Chinese-manufactured wireless routers from their homes to mitigate potential risks.

Back in December 2024, the Wall Street Journal reported that U.S. authorities were looking into TP-Links operations and had even considered banning the sale of its routers in the U.S. market due to these national security worries. At that time, it was estimated that TP-Link held approximately 65% of the U.S. market share for routers designed for residential and small business use, highlighting the firm's significant influence in this critical sector.

However, TP-Link Systems has publicly stated on its website that it has undergone a separation from its former parent company, TP-Link Technologies Co., based in China. The company asserts that this split, which began in 2022, was finalized in October of the previous year. This move appears to be a strategic effort to distance itself from the mounting scrutiny of Chinese technology firms and to reassure consumers and regulators of its independence.

This investigation into TP-Link Systems comes at a time of heightened tension between the U.S. and China, particularly in areas related to technology and cybersecurity. As both nations navigate competitive and collaborative dynamics in the tech space, such inquiries reflect ongoing vigilance regarding national security and the integrity of technological infrastructure.

As the situation develops, stakeholders, including consumers, industry experts, and policymakers, will be closely watching to see how this investigation unfolds and what it may mean for the future of router manufacturing in the United States.