The US Justice Department has blocked a $14 billion deal between Hewlett Packard Enterprise and Juniper Networks, citing concerns over reduced competition in the wireless networking industry. This is the first antitrust action taken by President Trump’s administration.
Hewlett Packard Enterprise acquired Juniper last year with plans to combine its data centers with Juniper’s networking business. However, regulators in Britain and the European Union cleared the deal, but US officials had expressed scrutiny of the transaction.
The lawsuit was filed by Omeed Assefi, acting assistant attorney general for the Antitrust Division of the Justice Department. He argued that the deal would lead to higher prices and reduced innovation in the industry.
Hewlett Packard Enterprise called the Justice Department’s suit “fundamentally flawed” and claimed that the combined company would create a US-based alternative globally, bolstering national security.
The decision marks a shift from the Biden administration, which had been tougher on corporate consolidation. This move suggests that there may be more consistency in antitrust enforcement between the two administrations than expected.
Industry groups had expressed hope that the next administration would take a different approach, with some experts suggesting that regulators should focus on larger social media companies instead.
Source: https://www.nytimes.com/2025/01/30/business/dealbook/hpe-juniper-deal-blocked.html