US Government Investigates TP-Link Over National Security Concerns

image

US 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, due to potential national security risks. The company’s routers, which are popular in the U.S., have been linked to cyber attacks.

TP-Link, based in China, holds a significant market share of about 65% in the home and small business router market in the U.S. It is also a preferred option on Amazon (NASDAQ:AMZN) and provides internet communications for the Department of Defense and other federal agencies.

Separate investigations into TP-Link have been launched by the Departments of Commerce, Defense, and Justice. According to sources, sales of TP-Link routers in the U.S. could be banned next year. The Commerce Department has also issued a subpoena to TP-Link.

Potential actions against TP-Link are likely to reflect a tough stance toward China, as might be taken by the incoming Trump administration.

A report released by Microsoft (NASDAQ:MSFT) in October revealed that a Chinese hacker group controlled a large network of vulnerable devices, mostly consisting of TP-Link routers. This network has been used by various Chinese actors to carry out cyber attacks on Western targets, including think tanks, government agencies, NGOs, and Department of Defense suppliers.

According to insiders, TP-Link routers often contain security vulnerabilities that are sent to customers before being addressed. While all routers may have flaws, it has been reported that TP-Link has not communicated with security researchers concerned about these issues.

TP-Link operates in the U.S. through a California-based business unit. A spokesperson from the unit stated that TP-Link is assessing potential security threats and taking measures to address known vulnerabilities. The spokesperson also expressed the company's willingness to communicate with the U.S. government to demonstrate that its security practices meet industry standards and to prove its commitment to the U.S. market and national security.

In response to inquiries about potential actions against TP-Link, Liu Pengyu, a spokesperson for China's embassy in Washington, accused the U.S. of using national security as a pretext to "suppress Chinese companies." He added that Beijing would resolutely defend the legal rights and interests of Chinese firms.