Trump Administration Signals Crackdown on Mergers with DOJ Lawsuit Against HP-Juniper Deal
In a bold move, the new Trump administration has signaled its intent to scrutinize major mergers and acquisitions, evident in a lawsuit filed by the Justice Department (DOJ) to block Hewlett Packard (HPE)'s acquisition of Juniper Networks (JNPR).
The DOJ alleges that the $14 billion merger would significantly reduce competition in the enterprise wireless networking market, where Cisco (CSCO) and HP would control over 70% of the US market.
"The acquisition would result in fierce head-to-head competition being eliminated," the DOJ stated. As of the third quarter of 2024, Cisco held nearly 42% of the WLAN market, which includes hardware and software for wireless connections within offices and educational institutions.
HPE and Juniper disputed the DOJ's analysis, claiming the merger would enhance innovation and provide customers with more choices. However, experts predict that the Trump administration will continue its aggressive antitrust enforcement, particularly regarding technology giants.
"Big Tech has run wild for years," said former President Trump, criticizing Big Tech companies for stifling competition and using their power to suppress the rights of small businesses and individuals.
In addition to the lawsuit against HPE, the DOJ has pursued antitrust actions against Google (GOOG) for alleged monopolization of the search engine market and the Federal Trade Commission (FTC) has challenged Meta's (META) acquisitions of Instagram and WhatsApp.
Legal experts expect Trump's DOJ and FTC to maintain pressure on potentially anticompetitive deals, particularly where market definitions are clear and mergers reduce the number of competitors.
"A pass is not being given," said antitrust expert Alden Abbott. "Trump's merger policy is going to be tough."