The U.S. Department of Justice has filed a lawsuit to block Hewlett Packard Enterprise’s $14 billion acquisition of networking equipment manufacturer Juniper Networks, arguing that the deal would suppress competition. The complaint was submitted on Thursday.
Following the news, shares of both HPE and Juniper Networks declined by over 3% in afternoon trading. This antitrust lawsuit is the first one initiated since President Donald Trump assumed office last week.
According to the DOJ, the acquisition would reduce competition, leaving only two dominant players—Cisco Systems and HPE—controlling more than 70% of the U.S. market for networking equipment.
More than a year ago, HPE announced its intention to acquire Juniper Networks in a $14 billion all-cash transaction as part of its strategy to enhance its artificial intelligence capabilities.
In a joint statement, the companies asserted their commitment to defending the deal, emphasizing that the merger would integrate two complementary networking portfolios, enabling them to compete more effectively against major global players.
HP Enterprise (Photo: Getty Images)“Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation,” the DOJ stated in its complaint.
Juniper has gained significant traction in recent years, with data centers increasingly adopting its products for artificial intelligence applications.
Intensified competition from Juniper compelled HPE to lower prices on its products and invest in feature enhancements under the “Beat Mist” campaign, which referenced a rival product from Juniper, according to the DOJ.
“Having failed to beat Mist on the merits, HPE changed tactics and in January 2024 opted to try to buy Juniper instead,” the agency further alleged.
Additionally, Bloomberg News reported earlier this week that HPE representatives met with Trump’s antitrust officials regarding the proposed acquisition of Juniper.
Meanwhile, the deal has received approval from the UK’s Competition and Markets Authority as well as the European Union.
