September Justice of the United States Halts HPE Deal to Acquire Juniper, Decreasing Competition in WLAN Market

The United States Department of Justice has filed a lawsuit against Hewlett Packard Enterprise’s acquisition deal of Juniper, a wireless network equipment company, for $14 billion. The DOJ argues that HPE and Juniper are ranked 2nd and 3rd in the Wireless Local Area Network (WLAN) market in the US. The merger would create a duopoly with a combined market share of 70%, reducing competition and potentially raising costs for smaller businesses.

In its complaint, the DOJ points out that Juniper has rapidly grown to be a top 3 WLAN equipment provider for corporate clients, putting pressure on HPE to innovate and lower prices. Internal documents from HPE reveal that Juniper is seen as a competitor, prompting HPE’s sales team to outmaneuver Juniper by undercutting prices. Ultimately, HPE sought to address this challenge by acquiring Juniper.

Both HPE and Juniper oppose the DOJ’s stance, noting that the deal has already been approved in multiple countries, including Europe and the UK’s CMA.

TLDR: The Department of Justice challenges HPE’s acquisition of Juniper, citing concerns about reduced competition in the wireless network equipment market, while HPE and Juniper defend the deal, highlighting benefits for customers and innovation in the industry.