A judge ruled during Tuesday's hearing that several U.S. states may intervene in Hewlett Packard Enterprise's (HPE.US) proposed $14 billion acquisition of Juniper Networks. The U.S. Department of Justice (DOJ) has recommended settling the case to allow the deal to proceed. U.S. Magistrate Judge Casey Pitts of San Jose, California, stated that Colorado and other states could voice their opinions on the transaction, though he has not yet decided whether to investigate the specific circumstances of the agreement.
An HPE spokesperson expressed opposition to the ruling but maintained confidence that "an objective review of the facts will conclude this settlement is appropriate." The DOJ initially filed a lawsuit shortly after President Trump took office in January, seeking to block the deal on grounds that it would stifle competition, leaving only two companies—Cisco (CSCO.US) and HPE—controlling over 70% of the U.S. networking equipment market.
In June, the DOJ agreed to drop its objections in exchange for HPE's commitment to license some of Juniper Networks' AI technologies to competitors and divest a business unit serving small and medium enterprises. Colorado and other states have requested Judge Pitts to examine the role of lobbying groups tied to the Trump administration in shaping the settlement and assess whether the terms adequately address the DOJ's original antitrust concerns. Democratic lawmakers and former DOJ attorneys have also criticized the agreement.
Last week, the DOJ introduced new conditions, requiring HPE to sell its instant-connect wireless networking business to a qualified competitor and barring the company from repurchasing the unit for ten years.
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