The U.S. Department of Justice has filed a lawsuit to prevent Hewlett Packard Enterprise Co. (HPE) from acquiring rival wireless networking provider Juniper Networks Inc. in a $14 billion deal, arguing that the merger would stifle competition, drive up prices, and curb innovation for American businesses.
Filed in the Northern District of California, the lawsuit contends that the acquisition violates antitrust laws by eliminating direct competition between two of the country’s top three suppliers of enterprise-grade wireless local area network (WLAN) technology. The complaint warns that reduced competition could impact critical industries, including hospitals, universities, and small businesses, which rely heavily on wireless networks.
“HPE and Juniper are strong competitors in the WLAN market, pushing each other to innovate and lower prices,” said Acting Assistant Attorney General Assefi of the Justice Department’s Antitrust Division. “This merger would disrupt that competition, leaving businesses and institutions across the country with fewer choices and higher costs for essential wireless technology.”
A Key Player in Wireless Innovation
WLAN technology is essential for modern businesses, enabling employees to connect to the internet and company networks via wireless devices. Retailers process payments, hospitals track patient care, and students access course materials—all through wireless networks. The Justice Department argues that Juniper has played a crucial role in advancing WLAN technology by introducing cost-cutting innovations that have forced HPE to improve its offerings.
Prior to the proposed merger, HPE viewed Juniper as a growing threat, actively training its sales teams to compete against the company. Internal documents reveal that HPE executives saw Juniper as a formidable rival and encouraged aggressive competition, with one executive urging employees to “kill” Juniper in head-to-head sales battles.
Market Consolidation Raises Concerns
If the acquisition moves forward, it would leave just two companies—post-merger HPE and market leader Cisco Systems Inc.—controlling over 70% of the enterprise WLAN market. The Justice Department argues this level of market concentration poses a serious risk, contradicting the competition protections established under the Clayton Act.
HPE, headquartered in Spring, Texas, operates its WLAN business from Santa Clara, California. Juniper Networks is based in Sunnyvale, California.
With the lawsuit now in motion, the battle over the future of the wireless networking industry is set to play out in court.
