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WASHINGTON D.C. — The Department of Justice (DOJ) and Hewlett Packard Enterprise (HPE) are aggressively pushing back against a group of Democrat-led states attempting to intervene in the Tunney Act review of their recent antitrust settlement. The states, spearheaded by California, are seeking a seat at the table in the court’s review of the DOJ’s approval of HPE’s massive $14 billion acquisition of Juniper Networks, claiming the deal is flawed, potentially “politically tainted,” and fails to protect consumers.
The DOJ’s Antitrust Division wasted no time in challenging the states’ attempt, accusing them of turning a critical judicial review process into “political theater.” HPE, too, has firmly argued that the states have no legal standing to disrupt the settlement, accusing them of overreaching and playing politics with a carefully negotiated deal. Critics of the settlement have raised concerns that it could harm competition, but these allegations have been dismissed by both the DOJ and HPE as baseless and politically motivated.
At the heart of the matter is the Tunney Act, which mandates that antitrust settlements be reviewed by a federal judge for public interest, but it severely limits external intervention. While public comments are allowed, formal intervention from parties like state governments is typically rare. The states’ attempt to step in could set a dangerous precedent, undermining the balance of power between state and federal regulators, some argue.
If the states’ push to intervene is successful, it could not only shift the dynamics of antitrust enforcement but also spark a fierce battle over the future of state-federal collaboration in regulating corporate mergers. This case could become a flashpoint for those who believe political motives are distorting antitrust oversight, versus those who claim the states are rightfully acting as guardians of consumer interests in an increasingly monopolistic economy.
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