The US Department of Justice has filed its first antitrust lawsuit under the Trump administration, aiming to block a $14 billion tech industry deal between Hewlett Packard Enterprise (HPE) and Juniper Networks.
The DOJ claims that the merger would reduce competition in the wireless local area network (WLAN) market, which could lead to higher prices for consumers. Juniper has grown rapidly as one of the top three US suppliers of WLAN technology, driving down costs through innovation and competitive pressure.
Acting Assistant Attorney General Omeed Assefi stated that the merger would “significantly reduce competition and weaken innovation,” potentially harming vital industries such as American hospitals and small businesses that rely on wireless networks. The proposed deal would give HPE and market leader Cisco control over 70% of the market, further reducing competition.
HPE and Juniper have pushed back against the lawsuit, arguing that their merger brings complementary networking offerings and will create a more competitive player in the global market. However, the DOJ remains committed to blocking the acquisition, citing concerns about reduced competition and higher prices for consumers.
Source: https://www.foxbusiness.com/politics/trump-admin-files-first-antitrust-action-block-tech-deal