Router manufacturer TP-Link faces possible sanctions in the United States and blames its competitor Netgear for this.
There’s trouble brewing in the router industry. TP-Link is taking its competitor Netgear to court. The originally Chinese company is at the center of a storm in the United States and claims that Netgear actively lobbied to turn public perception against them. There is an investigation against TP-Link that could have a major impact on its presence in the American market.
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US threatens with ban on Chinese router manufacturer TP-Link
TP-Link points an accusing finger at Netgear. According to TP-Link, Netgear, an American router manufacturer, allegedly orchestrated a defamation campaign to discredit them with experts and media. “Netgear has published and spread false and misleading statements about TP-Link and the security of TP-Link products,” states the complaint that Bloomberg was able to review.
The company claims to have already suffered at least one billion dollars in financial damages. TP-Link is also trying to get an old patent case reviewed, for which it had to pay Netgear 135 million dollars.
Chinese Espionage
At the end of 2024, TP-Link came under increased scrutiny in the United States. TP-Link is originally a Chinese company, and in Washington, that’s often enough to raise suspicion. However, the router manufacturer must also look at its own role in this.
The fact that TP-Link routers have been used in large-scale Chinese espionage attacks in the past won’t help the company’s defense. There is no evidence that TP-Link was complicit, however. But the network products don’t have the best reputation when it comes to security.
The decision to take measures against TP-Link lies with the Trump administration, and it’s an open secret how they feel about Chinese companies. Potential sanctions could have a major economic impact on TP-Link, which is the largest router manufacturer in the United States.
In hopes of changing perception, TP-Link is cutting its Chinese ties. A new headquarters was established in Irvine, California, operating as a separate entity from the Chinese headquarters in Shenzhen. We recently saw with chip manufacturer Nexperia that such a split doesn’t always work smoothly.