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DOJ Sues to Block Hewlett Packard's $14 Billion Juniper Acquisition

The Justice Department argues the merger would stifle competition, reduce innovation, and consolidate control of over 70% of the U.S. wireless networking market.

  • The U.S. Department of Justice has filed a lawsuit to block Hewlett Packard Enterprise's proposed $14 billion acquisition of Juniper Networks, citing antitrust concerns.
  • The DOJ claims the merger would consolidate the wireless networking market, leaving only two major players — HPE and Cisco — controlling over 70% of the U.S. market.
  • Juniper's rapid growth and innovative AI-driven tools have increased competition, leading HPE to discount its offerings and invest in innovation, according to the DOJ.
  • HPE and Juniper argue the merger would enhance competition by creating a stronger challenger to Cisco, but the DOJ contends it would eliminate vital head-to-head competition.
  • This case marks the first major antitrust action of the new Trump administration, surprising some who anticipated a more lenient stance on corporate mergers.
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