US Justice Department sues to block billion-dollar HPE-Juniper deal

Date:
Fri, 31 Jan 2025 11:27:00 +0000

Description:
US Department of Justice has challenged HPE-Juniper deal effects on competition, despite EU and UK approval.

FULL STORY ======================================================================
- US DoJ says HPE-Juniper deal will come at the cost of competition
- The companies say acquisition would give customers greater innovation and choice
- European and British investigators have already given their approval

The US Department of Justice has filed a lawsuit to block HPEs acquisition of Juniper Networks a deal anticipated to be worth $14 billion following a complaint filed with a US District Court for the Northern District of California.

The complaint alleges that HPE and Juniper, currently the second and third largest providers of enterprise-grade WLAN solutions in the US, would consolidate well over 70% of the market between them.

This proposed acquisition risks substantially lessening competition in a critically important technology market, the letter says.

US DoJ wants to block HPE/Juniper merger

The Department of Justice raises concerns about Chinese companies, which have been deemed a threat to national security in recent years, resulting in fewer choices for buyers. The merger would accentuate this: Customers in the United States have fewer options than they would if they were based abroad.

The complaint continues: It would significantly increase concentration in an already consolidated relevant market for enterprise-grade WLAN solutions.

Moreover, the DoJ highlights previous competition between HPE and Juniper, which benefitted customers through lower prices and more innovation. By becoming one, this rivalry would, unsurprisingly, stop.

HPE and Juniper are successful companies. But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate increasing concentration in an already concentrated market, said Acting Assistant
Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division.

In a joint statement , HPE and Juniper responded: We will vigorously defend against the Department of Justices overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice.

The companies also allege the DoJs statement that three companies dominate
the market is substantially disconnected from market realities, adding that
the transaction has been approved by antitrust regulators in 14
jurisdictions, including the European Commission and Britains CMA .

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Link to news story: https://www.techradar.com/pro/us-justice-department-sues-to-block-billion-doll ar-hpe-juniper-deal

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