US takes legal action against HPE’s Juniper acquisition

The DOJ argues that HPE’s $14 billion acquisition of Juniper endangers competition in the US networking industry, putting the deal under scrutiny.
HPE’s $14 billion Juniper deal is under scrutiny as the DOJ claims it threatens competition in the US networking market.

Hewlett Packard Enterprise’s planned $14 billion acquisition of Juniper Networks faces a legal challenge from the US Department of Justice. Officials argue the deal would harm competition by leaving just two major players—HPE and Cisco—controlling over 70% of the US networking equipment market.

HPE had announced the all-cash acquisition over a year ago, aiming to strengthen its AI capabilities. Both companies defended the deal, saying their networking solutions complement each other and would enhance competition against global rivals. They criticised the DOJ’s market definition, calling it outdated.

Regulators noted that Juniper’s innovations forced HPE to lower prices and invest in new technology under its ‘Beat Mist’ campaign. Eliminating this competition, they claim, would reduce incentives for innovation and cost savings in the industry.

Legal proceedings could take up to eight months, with an October deadline for completion. Authorities in the UK and European Union have already approved the deal.