On February 11, Juniper Networks refuted the U.S. Department of Justice's allegations regarding Hewlett Packard Enterprise's $14 billion cash acquisition bid. The Justice Department's lawsuit aims to impede the takeover of the networking equipment manufacturer. Alleging that the merger could stifle competition, the complaint suggests that Cisco Systems and HPE would gain over 70% control of the U.S. networking equipment market.
Juniper Networks, in a court filing in California, contested the complaint's portrayal of market dynamics for wireless networking solutions and emphasized that there are over eight companies providing such solutions in the U.S., besides Juniper and HPE. Juniper clarified that while Cisco has dominated with over 50% market share for a decade, HPE and Juniper combined hold less than 25% in the last three years, falling below the threshold for antitrust concerns as per the DOJ filing.
Juniper Networks argued that the proposed merger with HPE, announced over a year ago, would enhance competition, particularly against Cisco. The antitrust lawsuit filed by the DOJ represents the first such action during President Donald Trump's second term.