U.S. government investigates TP-Link over national security concerns

Investing.com -- The U.S. government is investigating TP-Link, a Chinese company that produces home-internet routers, over potential national security risks. The company's routers, which are popular in the U.S., have been associated with cyberattacks.

TP-Link, a China-based company, has a substantial share of about 65% in the U.S. router market for homes and small businesses. It is also a preferred choice on Amazon.com (NASDAQ:AMZN ) and provides internet communications for the Defense Department and other federal government agencies.

Separate investigations into TP-Link have been initiated by the Commerce, Defense, and Justice departments. According to sources, the sale of TP-Link routers in the U.S. could be banned next year. The Commerce Department has also subpoenaed TP-Link.

The potential action against TP-Link is likely to be taken by the incoming Trump administration, which has indicated a tough stance towards China.

A report from Microsoft (NASDAQ:MSFT ) in October revealed that a Chinese hacking entity controls a large network of compromised devices, the majority being TP-Link routers. This network has been utilized by various Chinese actors to launch cyberattacks against Western targets, including think tanks, government organizations, non-government organizations, and suppliers to the Defense Department.

According to insiders, TP-Link routers often contain security flaws and are shipped to customers without addressing them. While all routers may have bugs, TP-Link reportedly does not engage with security researchers who raise concerns about these issues.

TP-Link operates in the U.S. through a California-based business unit. A spokeswoman from the unit stated that TP-Link evaluates potential security threats and takes measures to address known vulnerabilities. She also expressed the company's willingness to engage with the U.S. government to show that their security practices align with industry standards and to demonstrate their commitment to the U.S. market and national security.

In response to inquiries about potential actions against TP-Link, Liu Pengyu, a spokesman for the Chinese Embassy in Washington, accused the U.S. of using national security as a pretext to "suppress Chinese companies." He added that Beijing would firmly defend the lawful rights and interests of Chinese firms.

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Source: Investing.com