The US Department of Justice is suing to prevent Hewlett Packard Enterprise (HPE) from acquiring Juniper Networks in a $14 billion deal. The lawsuit argues that merging the second and third largest players in the wireless LAN (WLAN) market could diminish competition, leading to fewer choices and increased prices for consumers. The DOJ's concerns are fueled by insights from HPE's sales force indicating that Juniper was a substantial competitive threat prior to the acquisition announcement, emphasizing the existing rivalry that the merger would eliminate.
HPE and Juniper are successful companies. But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate - increasing concentration in an already concentrated market.
Just a month before the proposed acquisition was announced, front-line HPE salespeople were concerned that '[t]he Juniper threat [was] dire' because in dozens of opportunities, Juniper was 'trying to unseat' HPE.
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