The US Department of Justice (DOJ) filed a complaint to the court on Thursday and blocked the $ 14 billion of the $ 14 billion Juniper Networks proposed by Hewlett Packard Enterprise.
DOJ claimed that the acquisition eliminated competition and only Cisco Systems and HPE dominated more than 70 % of the US market.
“Juniper has also introduced innovative tools that significantly reduce the cost of operating wireless networks for many customers. HPE discounts and invests in its own innovation due to this competitive pressure. I was forced to do so, “said DOJ with a complaint submitted to the federal government. Court in California.
Since President Donald Trump took office last week, the anti -Trust lawsuit is the first lawsuit.
Trump anti -Trust executor
According to Bloomberg reports, HPE representatives have recently met Donald Trump’s anti -trade executor on $ 14 billion bidding to buy Junipa Network.
HPE and Juniper representatives discussed concerns about transactions with the U.S. Department of Justice with Omeed Assefi, and the authorities have temporarily supervised the execution law of the institution.
According to Bloomberg, the wireless networking equipment manufacturer had previously met a top -biden anti -Trust official who expressed concern about the transaction.
“There is no reason why this transaction cannot be overcome,” said HPE’s highest executive, Antonio Neri, stated in the World Economic Forum in Davos, Switzerland.
Both the UK and the EU have already cleared their transactions. Last year, the Ministry of Justice started a detailed investigation of a partnership.
“The Ministry of Justice is concerned about the loss of competition with the sector market leader, Cisco Systems Inc.,” said Bloomberg. “Several small and medium -sized enterprises are competing in the market, but the Ministry of Justice’s enchantment believes that HPE and Juniper are two major propulsion of market innovation, and Cisco combines serious competition. I think I will lose. “
More than a year ago, HPE stated that all cash contracts would buy a Juniper network for $ 14 billion to enliven the provision of artificial intelligence.
Network equipment manufacturers have decreased by about 3 %, and server manufacturers’ stocks have decreased by about 2 %.
