The U.S. Department of Justice is pressing a federal judge to approve its antitrust settlement clearing Hewlett Packard Enterprise’s $14 billion acquisition of Juniper Networks, despite objections from states including California and New York.
Originally, the DOJ sued to block the deal, warning it could reduce competition in the enterprise wireless networking market, where HPE and Juniper are key rivals. Rather than fight in court, the agencies negotiated a settlement that allows the merger to move forward with conditions.
Under the agreement, HPE must divest its Instant On wireless business, and Juniper must license Mist AI networking technology to a third party. The DOJ argues these measures preserve competition, protect customers from higher prices, and maintain innovation in the sector.
Last week, the DOJ filed a motion for final judgment under the Tunney Act, asserting the settlement is in the public interest and does not require a full evidentiary hearing. The agency emphasized the court’s role is limited to reviewing the remedies’ effectiveness, not second-guessing DOJ discretion.
State attorneys general warn the proposed remedies are insufficient and could weaken antitrust enforcement standards. The judge’s decision will determine whether the merger proceeds as planned or faces closer scrutiny, making this a key test of federal-state tensions in U.S. antitrust law.
