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US Justice Department Moves to Block HPE’s $14 Billion Juniper Acquisition

 |  January 30, 2025

The U.S. Department of Justice (DOJ) has taken legal action to prevent Hewlett Packard Enterprise Co. (HPE) from proceeding with its $14 billion acquisition of Juniper Networks Inc., citing concerns over reduced competition in the enterprise wireless equipment market. According to Bloomberg, the DOJ filed a complaint on Thursday in a California federal court, arguing that the merger would significantly consolidate the sector, leaving only two dominant players—HPE and Cisco Systems Inc.—in control of 70% of the market.

The lawsuit represents the first antitrust challenge initiated by the DOJ under President Donald Trump’s administration. Per Bloomberg, the move signals a continuation of the aggressive stance on corporate mergers that was pursued under President Joe Biden’s tenure.

According to the DOJ’s complaint, the merger would eliminate direct competition between HPE and Juniper, which has historically led to lower prices and greater investment in network management software. The agency contends that the acquisition would lessen HPE’s incentive to offer discounts and innovate, ultimately harming businesses, universities, and hospitals that rely on enterprise networking solutions. Both HPE and Juniper, like their larger competitor Cisco, manufacture networking equipment such as routers and switches, which facilitate the flow of information across the internet and within organizations.

Related: HPE, Juniper in High-Stakes Talks with DOJ Over Antitrust Concerns

The DOJ highlighted that competition from Juniper has pressured HPE to reduce prices and enhance its product offerings, particularly in response to Juniper’s Mist product line. Internal documents referenced in the complaint reveal that HPE’s sales teams were specifically trained to counter Juniper’s influence in the market. Executives within HPE reportedly expressed concerns over Juniper’s rapid growth, with one describing the company’s expansion as “concerning for me.” In 2021, another HPE sales leader urged teams to “KILL MIST!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!”

According to Bloomberg, the DOJ asserts that after failing to outperform Juniper through competition, HPE opted to acquire the company instead. The agency argues that this strategic shift underscores the anticompetitive nature of the deal.

HPE has positioned itself as a provider of enterprise-focused technology since its split from Hewlett-Packard in 2015, specializing in high-performance computing, data center networking, and cloud services. The company has yet to publicly respond to the DOJ’s lawsuit.

Executives from HPE and Juniper reportedly met with DOJ antitrust officials earlier this week to discuss concerns surrounding the deal, Bloomberg reports. While the transaction has faced scrutiny in the U.S., it has already received unconditional approval from the European Union, which determined that the merger would not significantly impact competition in its markets. Similarly, the UK Competition and Markets Authority has also cleared the deal.

Source: Bloomberg

Apple Pushes Back Against UK Regulator’s Proposed Browser Market Remedies Apple Pushes Back Against UK Regulator's Proposed Browser Market Remedies

Apple Pushes Back Against UK Regulator’s Proposed Browser Market Remedies

 |  February 20, 2025

Apple has expressed concerns over proposed regulatory remedies aimed at addressing competition issues in the UK’s mobile browser market, arguing that certain measures could dampen the company’s drive to innovate, according to Reuters.

The tech giant’s response follows an ongoing investigation by Britain’s competition watchdog into the supply of mobile browsers, browser engines, and the distribution of cloud gaming services via mobile app stores in the country. According to Reuters, both Apple and Google submitted their responses to the investigation, which were made public on the UK government’s website on Wednesday.

Apple took particular issue with remedy options that could require it to provide feature access for its WebKit browser engine and iOS-specific functionalities used by Safari. Per Reuters, the company stated that it would “not be appropriate” to mandate free access to such features, emphasizing the significant time and resources required to develop them.

Read more: EU’s Digital Regulations Under Fire from US Leaders and Big Tech Giants

“Apple cannot recoup a reasonable amount of those expenses … to do so would have a chilling impact on Apple’s incentives to innovate and would lead to free-riding and underinvestment on the part of third parties,” the company argued in its submission.

The UK’s Competition and Markets Authority (CMA) launched the investigation in response to concerns that Apple and Google hold dominant positions in mobile browsing and cloud gaming services, potentially limiting consumer choice and stifling competition. The CMA has been considering various remedial measures to address these concerns, prompting responses from both tech giants.

According to Reuters, Apple maintains that imposing mandatory access to its proprietary technology at no cost would not only undermine its business model but could also disincentivize further investment in new browser-related innovations.

The investigation remains ongoing, and the CMA has yet to decide on the final course of action.

Source:Reuters