The Justice Department has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks
The Justice Department has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks, marking the first antitrust action under the new Trump administration. This move comes as a surprise, given expectations that Trump's second term would ease up on antitrust enforcement after the strict regulatory stance taken under President Biden.
The DOJ's complaint argues that HPE, feeling competitive pressure from Juniper, was forced to innovate and lower prices—a dynamic that would be lost if the merger proceeded. The government claims the deal would reduce competition, raise prices, and stifle innovation in the networking industry.
HPE and Juniper strongly opposed the DOJ's decision, stating in a joint statement that they would vigorously defend the merger, arguing that it would increase competition and innovation rather than restrict them.
The lawsuit highlights that HPE and Juniper are the second- and third-largest providers of WLAN products in the U.S., with Cisco leading the market. The DOJ asserts that allowing the merger would leave two companies controlling over 70% of the market, leading to potential price increases and fewer choices for businesses.
This lawsuit follows a series of high-profile antitrust cases under the Biden administration, including blocking the $24.6 billion Kroger-Albertsons merger, forcing American Airlines and JetBlue to abandon their Northeast Alliance, and pursuing legal action against Google for maintaining an alleged monopoly.
Despite speculation that Trump’s administration would be more merger-friendly, the Justice Department’s challenge to the HPE-Juniper deal suggests that some antitrust enforcement may continue. However, Trump has consistently opposed foreign takeovers of American companies, recently blocking Nippon Steel’s proposed $15 billion acquisition of U.S. Steel.
The lawsuit signals that while Trump's approach may differ from Biden’s, major corporate mergers and acquisitions will still face scrutiny, particularly in industries critical to U.S. innovation and competition.
