
As tipped by ChannelNews, the US Federal Government is moving to try and take Chinese Company TP Link’s networking products off the market due to security risks, and the use of their routers in major hack attacks and the Companies failure to address known issues with their products, the Company has 65% of the US market.
US authorities claim that TP-Link routers are routinely shipped to customers with security flaws, which the company often fails to address, according to people familiar with the matter. They are also investigating whether the Chinese are dumping cheap networking products on the market to get share and access to US homes and businesses.
While routers often have bugs, regardless of their manufacturer, TP-Link doesn’t engage with security researchers concerned about them, the people said.
Sold in Australia at Officeworks, Harvey Norman JB Hi Fi and specialist technology resellers along with the likes of Bing Lee, Amazon and discount stores the TP Link product range has been under investigation for some time with investigators at the US Commerce, Defense and Justice departments opening up new probes into the company, due to what is being described as a high level of risk.
The Commerce Department has already subpoenaed TP-Link to answer questions about the security risks associated with their products.
The Wall Street Journal claims that action against the company would likely fall to the incoming Trump administration, which has signaled an aggressive approach to China.
An analysis from Microsoft published in October found that a Chinese hacking entity maintains a large network of compromised network devices mostly comprising thousands of TP-Link routers.
Evidence seen by the US defense Department reveals that TP Link products have been used by numerous Chinese operatives to launch cyberattacks.
These China based individuals have gone after Western targets including think tanks, government organizations, nongovernment organizations and Defense Department suppliers.
ChannelNews has been told that TP Link products were used in hack attacks on Australian entities and Government institutions.
A spokeswoman for TP-Link claims that the Company assesses potential security risks and takes action to address known vulnerabilities.
The WSJ Claims that if TP Link routers are banned from the U.S., it would mark the biggest extraction of Chinese telecom equipment from the country since the Trump administration in 2019 ordered Huawei Technologies ripped out of American infrastructure.
TP-Link’s U.S. growth took off during the pandemic, when people were sent home to work and needed reliable internet.
The company climbed from around 20% of the U.S. market for home and small-business routers in 2019 to 65% this year due to discounting and the ranging of “cheap” products, which under investigation due to the low cost of their devices.
It took an additional 5% of the market in the third quarter of this year.
Anne Neuberger, a top White House official, says the government plans to address risks to the supply chain in the telecommunications sector.
The company’s market dominance has been achieved in part through lower prices. Its routers are cheaper than competitors, often by more than half, according to market data.
The Justice Department is investigating whether the price discrepancies violate a federal law that prohibits attempts at monopolies by selling products for less than they cost to make, according to a person familiar with the matter. The TP-Link spokeswoman said the company doesn’t sell products below cost and is committed to compliance with U.S. laws, including antimonopoly laws.