Washington, D.C. — In response to news that the Department of Justice Antitrust Division has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) proposed $14 billion acquisition of rival wireless networking firm Juniper Networks, the American Economic Liberties Project released the following statement.

“The first major merger enforcement of this new administration is a warning shot to board rooms who thought they would be given a free pass to violate the law,” said Lee Hepner, Senior Legal Counsel at the American Economic Liberties Project. “Aside from the important continuity this action represents, it’s a strong case in its own right: HPE and Juniper are two of the top three players in an already concentrated wireless networking market, and this merger would all but guarantee higher prices and weaker innovation for businesses, hospitals, and universities that rely on their technology. We applaud the DOJ and Acting Assistant Attorney General Omeed Assefi for stepping in.”

HPE’s proposed $14 billion acquisition of Juniper Networks would combine two of the three largest providers of enterprise wireless networking technology, leaving only Cisco as a meaningful competitor. The market for enterprise-grade wireless networking — used by businesses, hospitals, universities, and other institutions to power critical operations — is already a highly concentrated, with HPE, Juniper, and Cisco together controlling over 70% of the industry. The DOJ’s suit argues that the deal would eliminate head-to-head competition, drive up costs, and stifle innovation, particularly since Juniper has been a disruptive force. Internal HPE documents show the company viewed Juniper as a “threat” and launched aggressive sales campaigns to beat its smaller rival — until it opted to buy out the competition instead.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.