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Attorneys general demand transparency and review potential political influence in Juniper’s merger with Hewlett-Packard Enterprise.
Several U.S. states are raising concerns over Hewlett-Packard Enterprise’s (HPE) $14 billion purchase of Juniper Networks. They are asking a judge for permission to intervene in the case, arguing that the public deserves clarity on how the deal was approved.
Led by Colorado Attorney General Phil Weiser, seven Democratic attorneys general by including Washington, D.C. have filed court documents on Tuesday. They say the circumstances around the Department of Justice’s (DOJ) settlement with HPE and Juniper seem suspicious and want to investigate further.
At the heart of this transaction is Juniper Networks, a significant manufacturer of networking equipment. Critics fear that the market may become less competitive as a result of its acquisition to HPE. The majority of the U.S. networking market would be controlled by HPE and Cisco alone if the merger proceeds as anticipated. The DOJ first filed a lawsuit to stop the purchase, claiming it would hurt competition. However, the DOJ retracted its objections in June, shortly before the start of a trial.
In exchange, HPE agreed to license Juniper’s artificial intelligence (AI) technology to competitors and sell a business unit that serves smaller customers. Now, the state attorneys general are interested in learning more about the reasons behind the DOJ's decision. They also wonder if the conclusion was influenced by lobbyists associated with the Trump administration.
If the judge in California allows the states to join the case, they could ask for the merger to be paused. This would delay Juniper’s integration into HPE until further review. The states argue that such a large and important tech deal should be fully transparent to ensure it is fair, legal, and not driven by politics.
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