- They doj says the Hpe-Juniper agreement will be at the price of competition
- Companies say that the acquisition would give customers a “greater innovation and choice”
- European and British investigators have already given their approval
The American Ministry of Justice has brought legal action to block the acquisition by HPE of Juniper Networks – an agreement which plans to be worth $ 14 billion – following a complaint filed with an American district court For the northern district of California.
The complaint alleys that HPE and Juniper, currently the second and third largest providers of business quality WLA solutions in the United States, would “well” consolidate 70% of the market between them.
“This acquisition project risks considerably reducing competition in an extremely important technology market,” said the letter.
Us doj wants to block the HPE / Juniper merger
The Ministry of Justice raises concerns about Chinese companies, which have been considered a threat to national security in recent years, leading to less choice for buyers. The merger would accentuate this: “Clients in the United States have fewer options than they would do if it were based abroad.”
The complaint continues: “This would considerably increase the concentration in an already consolidated market for business quality WLAN solutions.”
In addition, the DoJ highlights the previous competition between HPE and Juniper, who benefited customers thanks to lower prices and more innovation. By becoming one, this rivalry would stop, without surprise.
HPE and Juniper are prosperous companies. But rather than continuing to compete as competitors on the WLAN market, they seek to consolidate themselves – increasing the concentration on an already concentrated market, “said interim deputy prosecutor Omeed A. Assfi of the antitrust division of Ministry of Justice
In a joint declaration, Hpe and Juniper replied: “We will vigorously defend ourselves against the excessive interpretation of the Ministry of Justice of antitrust laws and demonstrate how this transaction will provide customers with greater innovation and choice.”
Companies also allege that the DOJ Declaration that three companies dominate the market is “considerably disconnected from the realities of the market”, adding that the transaction has been approved by antitrust regulators in 14 jurisdictions, including the European Commission and the British AMC.
