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Democratic AGs Urge Court to Reconsider DOJ Settlement in $14B HPE-Juniper Deal

A coalition of 20 Democratic attorneys general, led by Colorado’s Phil Weiser, is urging a federal court to scrutinize and potentially reject the U.S. Department of Justice’s settlement that cleared Hewlett-Packard Enterprise’s $14 billion acquisition of Juniper Networks.

In a letter filed Friday, the AGs argued the court must examine whether the DOJ’s decision was tainted by “undue influence” from politically connected lobbyists. “If… the evidence establishes that it was the product of undue influence, then the court should reject it as against the public interest,” Weiser wrote.

The DOJ initially sued to block the merger in January, shortly after Trump took office, citing antitrust concerns that the deal would leave HPE and Cisco controlling over 70% of the U.S. networking equipment market. But just before trial in June, the DOJ reversed course, dropping its case in exchange for HPE agreeing to license Juniper’s AI technology and divest a unit serving small and mid-sized businesses.

That reversal has fueled controversy. Two DOJ antitrust officials who approved the settlement were later fired, in what sources described as retaliation against division head Gail Slater for resisting political pressure to settle. Former DOJ official Roger Alford, one of those dismissed, later accused leadership of having “perverted justice” to favor HPE.

The AGs want the court to hear testimony from Alford and other DOJ staff, as well as consultants tied to HPE, before finalizing approval. The push sets up another flashpoint in the broader debate over antitrust enforcement and political interference in major tech-sector mergers.

AI Startup Perplexity Offers $34.5 Billion for Google Chrome

Perplexity AI, led by Aravind Srinivas, made an unsolicited all-cash bid of $34.5 billion to acquire Google’s Chrome browser, a price far above its own $14 billion valuation. The offer comes as web browsers regain importance in the AI search race, providing access to billions of users and valuable search data.

Perplexity, which already operates an AI-enabled browser called Comet, plans to maintain Chrome’s open-source Chromium code, invest $3 billion over two years, and preserve the default search engine, pledging no equity component in the deal. The startup has raised around $1 billion from investors including Nvidia and SoftBank and stated multiple funds are willing to finance the offer.

Google has not commented and has no plans to sell Chrome, with regulatory pressure and an ongoing antitrust case possibly leading to a prolonged legal battle. Analysts note the sale could take years to resolve, with appeals potentially reaching the Supreme Court. Perplexity’s move follows previous high-profile offers, such as its bid for TikTok US in January, and highlights the growing competition in AI-driven search and browsers.

Musk Threatens Legal Action Against Apple Over App Store Rankings

Elon Musk announced on Monday that his AI startup xAI will pursue legal action against Apple, accusing the tech giant of violating antitrust rules by allegedly favoring OpenAI’s ChatGPT in App Store rankings.

Musk claimed Apple’s App Store policies make it “impossible for any AI company besides OpenAI to reach #1,” calling the practice a “clear antitrust violation.” At present, ChatGPT is ranked first in the U.S. App Store’s “Top Free Apps,” while xAI’s chatbot Grok stands in fifth place.

Musk also criticized Apple for not featuring X (formerly Twitter) or Grok in its “Must Have” section, despite X being the “#1 news app globally” and Grok ranking among the top five apps. He suggested Apple might be “playing politics” in its selection process.

Apple, OpenAI, and xAI did not respond to Reuters’ requests for comment. However, OpenAI CEO Sam Altman pushed back against Musk’s claims, pointing out the irony by referencing Musk’s own alleged efforts to manipulate X for personal advantage.

Community fact-checkers on X highlighted that other AI apps, such as China’s DeepSeek and Perplexity AI, have reached the top spot in the App Store this year, undermining Musk’s argument that only OpenAI benefits from Apple’s system.

The dispute comes amid increasing regulatory scrutiny of Apple’s App Store dominance. Earlier in 2024, the EU fined Apple €500 million ($581 million) for anti-competitive practices, ruling that the company’s restrictions prevented app developers from directing users outside the App Store ecosystem.

Musk’s challenge may add further pressure to global regulators already investigating Apple’s control over app distribution and its partnerships with AI companies.