US Justice Department Files Lawsuit To Prevent Hewlett Packard From Acquiring Juniper Networks

US Justice Department files lawsuit to prevent Hewlett Packard from acquiring Juniper Networks

States that the $14 billion deal could lead to reduced competition in the networking market

The Department of Justice has filed a lawsuit in the US District Court of California to prevent Hewlett Packard Enterprise from acquiring Juniper Networks.

The department claimed that the $14 billion deal would result in Cisco Systems and Hewlett Packard controlling over 70 percent of the market. It would eliminate competition in the networking equipment sector.

Early last year, Hewlett Packard announced buying Juniper Networks in an all-cash deal, as it intended to gear up the artificial intelligence (AI) offerings.

Over the past few years, Juniper gained prominence, as data centers flocked to its products for Al applications.