TP-Link has filed a lawsuit against competitor Netgear, alleging that Netgear orchestrated a smear campaign that has reportedly cost the US-based router manufacturer over $1 billion in sales.
According to the indictment, Netgear falsely told journalists and influencers that the company’s technology had been compromised by Beijing. Allegedly, Netgear used its earnings calls as a platform to spread falsehoods and pass along misinformation about TP-Link’s ties to China.
“Netgear’s campaign of falsehoods is designed to disparage TP-Link and generate unfounded fears regarding the security of TP-Link products, including to give an unfair advantage in the marketplace that it otherwise could not enjoy through fair, head-to-head competition with TP-Link based on product quality and security,” TP-Link suggests in court documents.
In addition, TP-Link claims that Netgear’s action “has injured and threatens injury to well over a billion dollars in sales.” For this, TP-Link will hold Netgear accountable.
Additionally, TP-Link claims that Netgear breached an agreement signed in 2024. Last year, the two companies settled a patent dispute, in which TP-Link paid Netgear $135 million after a US court ruled that TP-Link had infringed on Netgear’s patents. The settlement also prohibited both companies from making negative statements about each other.
TP-Link is asking a federal judge for a ban on the alleged defamation campaign and the awarding of monetary damages for defamatory statements.
TP-Link was founded almost 30 years ago in China. Last year, the company split into two separate entities: an American unit headquartered in Irvine, California, and a Chinese entity based in Shenzhen.
Despite the division, TP-Link is facing growing scrutiny in Washington over national security issues. Both Democrats and Republicans have voiced their concerns that TP-Link’s products could be exploited by Chinese hackers to spy on behalf of the Chinese government.
The Trump Administration is said to be close to a decision to classify TP-Link as a threat to national security and impose a sales ban.
Furthermore, a criminal investigation is underway in the US into TP-Link’s potential antitrust practices. The company is alleged to be distorting competition in the US market by offering discount pricing, potentially below cost, to gain market share at the expense of competitors.
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