The US Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of networking gear maker Juniper Networks, citing concerns that the deal would reduce competition in the market.
The DOJ’s complaint, filed on Thursday, argues that the acquisition would create a duopoly, with just two companies—Cisco Systems and HPE—controlling more than 70% of the US networking equipment market. The lawsuit marks the first antitrust action since President Donald Trump took office last week.
HPE had announced its plans to acquire Juniper Networks for $14 billion in an all-cash deal over a year ago, aiming to enhance its artificial intelligence (AI) offerings. Both HPE and Juniper have defended the acquisition, claiming that the merger would combine complementary technologies, enabling them to better compete with global industry leaders.
In its complaint, the DOJ pointed out that Juniper’s innovative products had forced HPE to lower prices and invest heavily in innovation to remain competitive. Juniper, in recent years, has gained traction among data centers, particularly for AI applications, and has introduced cost-reducing tools for wireless network operations.
The DOJ claims that after failing to outperform Juniper’s rival product, Mist, in the market, HPE resorted to purchasing Juniper as a new strategy. The agency also noted that the UK’s Competition and Markets Authority and the European Union have already approved the deal.
As the lawsuit unfolds, shares of both HPE and Juniper Networks fell more than 3% in afternoon trading.
DOJ Sues to Block Hewlett Packard Enterprise’s $14 Billion Acquisition of Juniper Networks
The US Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of networking gear maker Juniper Networks, citing concerns that the deal would reduce competition in the market.
The DOJ’s complaint, filed on Thursday, argues that the acquisition would create a duopoly, with just two companies—Cisco Systems and HPE—controlling more than 70% of the US networking equipment market. The lawsuit marks the first antitrust action since President Donald Trump took office last week.
HPE had announced its plans to acquire Juniper Networks for $14 billion in an all-cash deal over a year ago, aiming to enhance its artificial intelligence (AI) offerings. Both HPE and Juniper have defended the acquisition, claiming that the merger would combine complementary technologies, enabling them to better compete with global industry leaders.
In its complaint, the DOJ pointed out that Juniper’s innovative products had forced HPE to lower prices and invest heavily in innovation to remain competitive. Juniper, in recent years, has gained traction among data centers, particularly for AI applications, and has introduced cost-reducing tools for wireless network operations.
The DOJ claims that after failing to outperform Juniper’s rival product, Mist, in the market, HPE resorted to purchasing Juniper as a new strategy. The agency also noted that the UK’s Competition and Markets Authority and the European Union have already approved the deal.
As the lawsuit unfolds, shares of both HPE and Juniper Networks fell more than 3% in afternoon trading.
