A group of Senate Democrats is pushing for an investigation into the Department of Justice’s (DOJ) handling of a lawsuit aimed at blocking Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks.
Senators Richard Blumenthal (Connecticut), Corey Booker (New Jersey), Elizabeth Warren (Massachusetts), and Amy Klobuchar (Minnesota) have expressed concerns to the DOJ Inspector General regarding the circumstances of the proposed settlement.
Recently, the DOJ’s antitrust division saw the firing of two top officials—Associate Deputy Attorney General Roger Alford and Associate Attorney General Bill Liner. These dismissals reportedly stemmed from internal disagreements about merger policies. It’s also noted that Attorney General Pam Bondy’s Chief of Staff rejected the head of the antitrust division, Gale Slater, from approving the HPE-Juniper settlement.
The senators indicated that these events reflect troubling patterns within the DOJ that could point to the politicization of merger analysis and enforcement actions.
They voiced concerns about possible inappropriate interference in law enforcement and highlighted that the full context of the campaign being undertaken is unclear, suggesting other questionable actions may have occurred.
In January, the Justice Department filed a lawsuit against the two largest wireless network providers in the country, marking a significant alignment with the Biden administration’s strategy to challenge the merger.
HPE and Juniper have pushed back against the lawsuit, arguing that the DOJ’s analysis was “fundamentally flawed” and asserting that the merger would enable them to compete better against global giants.
In late June, the DOJ revealed a settlement that would permit the acquisition to proceed, provided HPE sells its small business division and licenses Juniper’s software to independent competitors.
Recent reports indicated that the U.S. intelligence community was urging the DOJ to support the merger as a means to strengthen American companies against China’s Huawei.
The senators contended that the settlement fails to address the issues originally raised by the DOJ’s lawsuit, implying that the merger would enhance competition against Cisco in the marketplace.
They also pointed out HPE’s alleged decision to hire lobbyists with connections to the Trump administration and the subsequent dismissal of antitrust officials.
In a separate letter, the same four senators raised issues with Hewlett Packard’s president and CEO, Enrique Lores, accusing him of trying to exert undue influence to resolve the DOJ’s lawsuit.
They criticized HPE’s engagement with Trump family members and consultants close to the White House, suggesting it creates an appearance of political pressure aimed at the antitrust division.
They requested information from the company regarding its consultants, the nature of their work, and any discussions with the DOJ or Trump family members.
In response, HPE spokesperson Adam Bauer stated that the company believes Juniper’s acquisition is beneficial for public interest and promotes competition.
Bauer added that this transaction was appropriately approved by the DOJ with specific conditions and had received unconditional approval from 13 other global antitrust regulators, emphasizing respect for the regulatory process.
