Twenty state attorneys general are asking a federal court to block a major technology company merger, saying it could raise prices and may have been approved illegally.
In July 2025, Juniper Networks was purchased by Hewlett Packard Enterprise (HPE), a multinational business. With a focus on enhancing digital experiences and simplifying IT operations, the merger brought together HPE's IT portfolio with Juniper's AI-based capabilities.
However, Arizona Attorney General Kris Mayes joined 19 other state officials in challenging the $14 billion merger between HPE and Juniper Networks in a letter.
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The letter explains that the merger means just two companies, the new HPE and Cisco, now control over 75% of the networking equipment market. With less competition, prices could go up by 14% according to government documents.
State officials believe lobbyists may have illegally influenced the federal government's approval. Because of this, they want a judge to investigate how the merger got approved.
"These huge corporations have admitted this merger will jack up prices 14% for consumers," Kris Mayes said. She believes the deal helps "a small group of well-funded, corrupt individuals".
State Officials' Argument
State officials say the approval process was corrupt. Here's what they claim happened:
- Career lawyers and antitrust experts at the Justice Department said "no" to the merger.
- However higher-up political appointees overruled them after being lobbied by people connected to the Trump administration.
- The final settlement only required selling off a small, minor part of the business.
- Two senior attorneys who opposed the deal were fired.
- One fired attorney called the whole thing a "scandal."
The Legal Challenge
The Tunney Act of 1974, established following Watergate, is being used by state officials to stop corporate corruption in government decisions. Under this law, courts must make sure that merger approvals benefit everyone, not just businesses.
They want the court to hold hearings and investigate how the merger got approved. If they find evidence of corruption, they are demanding that the judge block the entire deal.
“And if, upon exposing the Settlement to sunlight, the evidence establishes that it was the product of undue influence, then the Court should reject it as against the public interest,” the letter explains.
