U.S. authorities are reportedly investigating Chinese router manufacturer TP-Link as a possible threat to national security after multiple cyberattacks have been linked to the company's popular routers.
What To Know: TP-Link is the top seller of routers on Amazon and holds about 65% of the U.S. market share of commercial and residential routers, speaking to the widespread use of the manufacturer's equipment, according to a Wall Street Journal report.
According to the Wall Street Journal's sources, three U.S. government departments — Commerce, Defense and Justice — opened probes into the company.
An office of the Department of Commerce subpoenaed TP-Link and the Department of Justice is investigating whether the company is violating a law against attempting a monopoly by selling products for less than cost, according to a person familiar with the matter. Earlier this year, the Department of Defence opened an investigation into national-security vulnerabilities in Chinese routers, according to people familiar with the matter, per the Wall Street Journal.
Authorities could ban TP-Link routers in the U.S. as soon as next year, according to people familiar with the matter, the Journal said.
Benzinga contacted Amazon and TP-Link to comment on the report and has not received a response at the time of publication.
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TP-Link’s Aginet brand gained significant traction with over 300 ISPs including AT&T, Inc. T, Comcast Corp. CMCSA and Verizon Communications Inc. VZ choosing TP-Link as a supplier.
TP-Link routers are also used by the Department of Defense, National Aeronautics and Space Administration, Drug Enforcement Agency and other federal agencies, highlighting the potential risk of national-security vulnerabilities related to the Chinese routers.
Why It Matters: If TP-Link routers are banned, it would mark the largest ban on Chinese technology in the U.S. since the Trump administration in 2019 prohibited equipment from Huawei Technologies. The Biden administration initiated probes into TP-Link, but any actions to be taken against the company will likely fall to the incoming Trump administration.
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