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

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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.

Juniper Networks Denies Allegations in DOJ Lawsuit to Block $14 Billion Merger with HPE

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Juniper Networks has formally denied the U.S. Department of Justice’s (DOJ) allegations regarding the $14 billion acquisition of the company by Hewlett Packard Enterprise (HPE). In a recent court filing, Juniper stated that the DOJ’s complaint, which seeks to block the all-cash takeover, misrepresents the competitive landscape for wireless network solutions.

DOJ’s Allegations:

The DOJ filed a lawsuit last month, arguing that the merger would lead to reduced competition in the networking equipment market, resulting in Cisco Systems (CSCO.O) and HPE controlling over 70% of the U.S. market. The department claims this dominance could harm consumers and stifle innovation in the industry.

Juniper’s Defense:

In its filing to a federal court in California, Juniper Networks disagreed with the DOJ’s assessment. The company argued that there are at least eight other competitors in the U.S. market offering wireless networking solutions, reducing the potential for anti-competitive behavior. Juniper further stated that Cisco has maintained more than 50% of the market share for over a decade, while the combined share of HPE and Juniper has been less than 25% in the last three years, not approaching a level that would trigger antitrust concerns.

Market Impact:

Juniper contended that the merger would enhance competition, particularly in challenging Cisco’s market dominance. The company emphasized that the combination of HPE and Juniper would not create a monopoly but rather foster greater competition in the sector.

Legal and Political Context:

This lawsuit marks the DOJ’s first significant antitrust action since President Donald Trump’s second term in office. The case is closely watched as it could set a precedent for future mergers and acquisitions in the tech industry.

US DOJ Sues to Block Hewlett Packard Enterprise’s $14 Billion Juniper Deal

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The U.S. Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks, arguing that the deal would reduce competition in the networking equipment market. According to the complaint, the merger would result in just two companies—HPE and Cisco Systems—controlling more than 70% of the U.S. market for networking gear.

Shares of both HPE and Juniper Networks fell by about 2% following the announcement. This antitrust lawsuit is the first to be filed under the current administration.

In response, the companies argue that the deal will not harm competition, claiming that it would bring together two complementary networking solutions that can better compete with established global players. They also pointed to Juniper’s innovations, which have driven HPE to lower its prices and invest more in innovation.

The DOJ’s complaint specifically noted that Juniper’s competitive pressures have forced HPE to offer discounts and develop new features to maintain market relevance. The companies are prepared to defend the merger in court, with pretrial and trial proceedings expected to take place over the next eight months, before the deal’s walk-away date in October.

While the DOJ moves forward with its challenge, both the UK’s Competition and Markets Authority and the European Union have already approved the acquisition.