Juniper Networks faces DOJ roadblock in HPE acquisition

The US Department of Justice (DOJ) has intervened to prevent the $14 billion acquisition of Juniper Networks by Hewlett Packard Enterprises (HPE) due to antitrust concerns. The DOJ's lawsuit, filed in the Northern District of California, contends that the merger would reduce competition in the enterprise-grade WLAN market, a sector where HPE and Juniper stand as second and third largest providers, respectively. Concerns are outlined under the Clayton Act, suggesting the merger would eliminate competition, increase prices, stifle innovation, and limit consumer choices. Juniper Networks has seen rapid growth, challenging HPE to lower prices and enhance technological offerings. The DOJ argues that the acquisition would lead to a consolidated market controlled by HPE-Juniper and Cisco Systems, potentially resulting in over 70% market share. Acting assistant attorney general Omeed A Assefi highlights the potential negative impacts on competition and innovation. Despite the DOJ's stance, HPE and Juniper are committed to moving forward, arguing that the merger would benefit innovation and national security. The outcome of the litigation will define the structure of competition in a crucial sector relying on wireless technology.