The US Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) acquisition of Juniper Networks, a rival in wireless network communications, for $14 billion. The lawsuit claims that the deal would significantly reduce competition and lead to higher prices for consumers.
Juniper acquired an independent startup called Mist Systems in 2019, which developed AI technology called Mist that helped Juniper achieve rapid growth. The technology uses machine learning and data science to improve wireless network efficiency and productivity.
HPE allegedly felt threatened by Juniper’s success and launched a “Beat Mist” campaign to compete with the rival company’s innovative technology. However, instead of beating Juniper, HPE decided to buy it, reportedly because it could not match the rival company’s AI capabilities.
The DOJ alleges that if HPE and Juniper combined, they would control over 70% of the national market, leading to reduced competition and higher prices for consumers. The proposed merger would also weaken innovation in the wireless networking space, affecting industries such as American hospitals and small businesses.
Hewlett Packard Enterprise has denied the DOJ’s claims, stating that the acquisition will provide customers with greater innovation and choice, and strengthen US networking infrastructure.
Source: https://finance.yahoo.com/news/hewlett-packard-exec-sent-dramatic-060700816.html