US justice department moves court against Hewlett Packard-Juniper deal | Company Business News-OxBig News Network

The US Department of Justice (DOJ) on Thursday filed a complaint in a court to block Hewlett Packard Enterprise’s $14 billion acquisition deal for Juniper Networks.

The DOJ argued that the acquisition would eliminate competition and would lead to only two companies — Cisco Systems and HPE — controlling more than 70% of the US market for networking equipment.

“Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation,” the DOJ said in its complaint filed in a federal court in California.

The antitrust lawsuit marks the first since President Donald Trump took office last week.

Trump’s antitrust enforcers

Recently, HPE’s representatives had met with Donald Trump’s antitrust enforcers over its $14 billion bid to buy Juniper Networks, according to a report by news agency Bloomberg.

HPE and Juniper representatives discussed the US Justice Department’s concerns about the deal with Omeed Assefi, the official temporarily overseeing antitrust enforcement at the agency, said the report.

The wireless networking equipment makers previously met with top Biden antitrust officials, who raised concerns about the deal, Bloomberg reported.

“Nothing gives me pause why this deal would not get through,” HPE Chief Executive Officer Antonio Neri had said during the World Economic Forum in Davos, Switzerland.

Both the UK and the EU have already cleared the deal. The Justice Department launched an in-depth probe of the tie-up last year.

“The Justice Department is concerned about a possible loss of competition with Cisco Systems Inc., the market leader in the sector,” Bloomberg reported. “While several smaller companies also compete in the market, Justice Department enforcers consider HPE and Juniper to be two of the primary drivers of innovation in the market, and believe Cisco will lose significant competition if they combine.”

More than a year ago, HPE had said that it would buy Juniper Networks for $14 billion in an all-cash deal, as it looks to spruce up its artificial intelligence offerings.

Shares of network equipment maker fell about 3% while the server maker’s stock was down about 2%.