The US Justice Department has sued to block the acquisition of Juniper Networks by HPE, asserting that it would eliminate competition between two of the three top wireless networking firms.
HPE and Juniper are the second and third largest providers of enterprise-grade WLAN solutions in the US, says the DoJ, and alleges that the $14 billion acquisition “would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions, in violation of Section 7 of the Clayton Act.”
The complaint states that Juniper has been a disruptive force among the three largest enterprise-grade WLAN suppliers, and has introduced tools that have materially decreased the cost of operating wireless networks. This competitive pressure, it is claimed, has forced HPE to discount its offerings and invest in its own innovation.
