HPE-Juniper Merger Faces Scrutiny Amid Stricter FTC Standards
In a move signaling continued antitrust enforcement, the Federal Trade Commission (FTC) under Chair Andrew Ferguson has maintained the stricter merger guidelines implemented during Lina Khan's tenure. These guidelines expand the scope of antitrust review, including lowering thresholds for presuming violations and considering labor market impacts.
The guidelines omit consumer welfare as the sole review standard and focus on potential market concentration. University of Tennessee professor Maurice Stucke notes the shift towards increased bipartisan support for antitrust enforcement.
Under President Trump's first term, the FTC and Department of Justice (DOJ) filed 118 merger challenges. Biden's first three years saw 108 challenges, with a peak of 50 in fiscal year 2022.
The Trump administration has demonstrated antitrust aggressiveness, with the DOJ filing a lawsuit to block the $14 billion merger of Hewlett Packard Enterprise (HPE) and Juniper Networks (JNPR). The DOJ alleges the deal would stifle competition in enterprise wireless networking.
HP and Juniper refute the DOJ's analysis, claiming the merger would enhance innovation and provide customers with more options.