Juniper Networks Rejects DOJ Claims in Lawsuit Blocking $14 Billion HPE Deal
Juniper Networks has denied allegations made by the U.S. Department of Justice (DOJ) in a lawsuit aimed at stopping its $14 billion merger with Hewlett Packard Enterprise (HPE). According to Reuters, the DOJ claims the deal would hurt competition by giving HPE and Cisco Systems control over more than 70% of the U.S. networking equipment market.
In a court filing on Monday, Juniper argued that the DOJ’s complaint doesn’t accurately reflect the market. The company pointed out that there are at least eight other companies offering wireless networking solutions in the U.S., besides Juniper and HPE. Juniper also said that Cisco has dominated the market for over a decade with more than 50% share, while HPE and Juniper together have held less than 25% in recent years.
Juniper added that the combined market share of HPE and Juniper is too low for the DOJ to consider the deal illegal. The company believes the merger would actually increase competition against Cisco, not reduce it.
This lawsuit is the first major antitrust case under President Donald Trump’s second term, according to Reuters.
The deal, announced over a year ago, is now in jeopardy as the DOJ tries to block it, claiming it could harm consumers and businesses by limiting choices in the networking equipment market.
The case highlights the ongoing debate over competition in the tech industry and how big mergers could impact market dynamics.
This report is based on information from Reuters, a trusted news source.