(Reuters) - The U.S. Department of Justice (DOJ) has initiated a criminal antitrust investigation into TP-Link Systems Inc., a router manufacturer based in California. This inquiry centers on the company's pricing strategies and the potential national security risks associated with its growing share of the router market, as reported by Bloomberg News on Thursday.

Prosecutors are delving into whether TP-Link has engaged in predatory pricing practices. Such strategies could potentially undermine competitors that do not pose any national security threats, making it difficult for them to operate effectively within the U.S. market. This investigation highlights the increasing scrutiny of foreign companies, particularly those linked to China, amid concerns over cybersecurity vulnerabilities, especially as they relate to American government and business infrastructures.

The DOJ and TP-Link have yet to respond to requests for comments from Reuters regarding the ongoing investigation. The silence from both parties adds an air of uncertainty surrounding the matter. This is not the first time TP-Link has come under the microscope; there has been a growing chorus of concerns from U.S. lawmakers regarding the implications of using Chinese-manufactured routers in American households and businesses. These lawmakers have previously called for comprehensive investigations into TP-Link and have urged citizens to consider removing Chinese-made wireless routers from their homes to mitigate potential risks.

Furthermore, a report from the Wall Street Journal in December 2024 indicated that U.S. authorities had begun probing TP-Link over these national security issues and were contemplating a ban on the sale of its routers. The same report revealed that TP-Link holds approximately 65% of the U.S. market share for routers aimed at home and small business users, a significant portion that raises concerns about market monopolization and consumer choice.

In an effort to distance itself from these security concerns, TP-Link Systems asserts on its website that it has separated from the parent company, TP-Link Technologies Co., which is based in China. The company claims that the process of severing ties began in 2022 and was finalized in October of the previous year. This split is likely an attempt to alleviate fears regarding potential espionage or unauthorized data access, concerns that have plagued various tech firms associated with Chinese manufacturing.

The outcome of this investigation could have far-reaching implications not only for TP-Link but also for the broader tech industry, as it brings to the forefront the complexities of international trade, cybersecurity, and economic competition.