Office of public affairs | The Ministry of Justice continues to block the proposed acquisition of $ 14 billion in Hewlett Packard Enterprise at $ 14 billion in Networks Juniper Networks of rival wireless network technology

The Ministry of Justice continued today to block Hewlett Packard Enterprise Co. (HPE) proposed an acquisition of $ 14 billion from the technology provider of the Local Wireless Zone (WLAN) Juniper Networks Inc. (Juniper) . HPE and Juniper are respectively the second and third largest providers of business quality WLAN solutions in the United States. The complaint, filed in the northern district of California, alleges that the proposed transaction would eliminate fierce-up-to-head competition between companies, increase prices, reduce innovation and decrease the choice of dozens of companies and ‘American institutions, in violation of section 7 of the Clayton Act.

“HPE and Juniper are prosperous companies. But rather than continuing to compete as competitors on the WLAN market, they seek to consolidate themselves – increasing the concentration on an already concentrated market, “said interim assistant prosecutor Omeed A. ASSEFI of the antitrust division of Ministry of Justice. “The threat that this merger poses is not theoretical. The vital industries of our country – including American hospitals and small businesses – count on wireless networks to complete their missions. This proposed merger would considerably reduce competition and weaken innovation, which would cause large segments of the American economy by paying more for less wireless technology suppliers. »»

WLAN technology – which includes hardware, software and advanced artificial intelligence – is essential for the modern workplace. Millions of Americans create and share today resources from the company and access the Internet from wireless devices. Detail employees wirelessly treat payments and newspaper inventory. Doctors access medical records on phones and tablets and follow patient rescue care. University students take notes on their laptops and access their dormitory lessons. Wireless networking is the main means by which many employees connect to the computer network of their employer and to the Internet.

As the complaint claims, Juniper was a disturbing force which quickly went from a minor player to among the three largest suppliers of business quality WLAN in the American juniper has also introduced innovative tools that have decreased considerably The cost of operating a wireless network for many customers. This competitive pressure has forced HPE to reduce its offers and invest in its own innovation. HPE has recognized and followed the growing service of Juniper and has embarked on a campaign, including compulsory training for its engineers and sellers, to “beat” the juniper when it is in competition for contracts. Indeed, just a month before the announcement of the proposed acquisition, the first -line HPE sellers were concerned with the fact that ”