Juniper Networks Denies DOJ Allegations, Vows to Defend Merger with HPE

In a surprising turn of events, Juniper Networks has denied the allegations made by the U.S. Department of Justice (DOJ) in its lawsuit to block the proposed $14 billion merger with Hewlett Packard Enterprise (HPE). The companies, which announced the deal in January 2024, have been vocal about their commitment to closing the transaction and delivering benefits to customers.

The DOJ's complaint, filed on January 30, 2025, argues that the merger would stifle competition and lead to Cisco Systems and HPE controlling more than 70% of the U.S. market for networking equipment. However, Juniper Networks has refuted these claims, stating that the Wireless Local Area Network (WLAN) market is characterized by robust competition, with at least eight alternatives to HPE and Juniper.



Juniper Networks' response to the DOJ's lawsuit highlights the presence of well-capitalized competitors in the U.S. market, several of which hold market shares comparable to Juniper and one of which holds more than 50% market share. These competitors generate business across all customer sizes and industry verticals, including large enterprise customers. This indicates that the market is not concentrated and that there are viable alternatives to HPE and Juniper.

Moreover, the transaction has been approved by antitrust regulators in 14 jurisdictions, including the European Commission and the U.K. Competition and Markets Authority. These regulators unconditionally cleared the transaction and acknowledged the pro-competitive benefits of this transaction. Other than Israel, the U.S. is the only jurisdiction to not have cleared this deal.



Juniper Networks' CEO, Rami Rahim, has expressed confidence in the deal, stating that the combination with HPE would accelerate innovation across the entire networking stack by investing in various R&D initiatives. This innovation would create more compelling solutions for customers and partners, ultimately benefiting customers who gain a comprehensive AI-driven and cloud-native IT portfolio.

The companies have vowed to vigorously defend the transaction in court and believe they will prevail in litigation, allowing them to close the deal and deliver the benefits of this acquisition to their customers. The outcome of the DOJ's lawsuit remains uncertain, but the companies' commitment to the merger suggests a promising future for the combined entity.

In conclusion, the DOJ's lawsuit to block the merger between Juniper Networks and HPE has sparked a heated debate about competition and innovation in the networking market. While the DOJ raises concerns about reduced competition and weakened innovation, Juniper Networks maintains that the deal is pro-competitive and beneficial for customers. As the legal battle unfolds, the future of the merger and the networking industry hangs in the balance.