DoJ Strikes Deal With HPE to Address Antitrust Concerns Over Juniper Networks Takeover
A $14 billion corporate blockbuster almost hit the rocks over antitrust fears—but now Hewlett Packard Enterprise (HPE) and Juniper Networks appear cleared for merger, as long as they jump through some hoop. The U.S. Department of Justice (DoJ), after months of legal wrangling, has settled its lawsuit aimed at blocking the deal. So what’s the catch? HPE must offload a big chunk of its campus and branch business and hand over the keys to some critical software IP.
Let’s break it down: HPE is snapping up Juniper Networks, its rival in enterprise network gear, in a megadeal that rattled regulators. The DoJ’s worry: combine the second- and third-largest enterprise wireless equipment makers, and suddenly, competition thins out, especially when HPE and behemoth Cisco could control more than 70% of the market. Such a duo could set prices, steer innovation, and give big business buyers fewer choices when building WiFi-connected offices and connected campuses. The DoJ took action in January 2025—lawsuit filed, trial date circled, and everything pointed toward a courtroom showdown this summer.
But right before trial, both sides struck a compromise. HPE agreed to divest its entire Instant On wireless LAN line, covering every asset from hardware and IP to the people running the R&D and the teams dealing with customers. Whoever buys it can’t be just anyone—the DoJ gets to approve the new owner to make sure it’ll actually compete in the market. HPE has 180 days after closing the Juniper deal to make it happen. No transfer, no merger.
That’s not all. The DoJ also forced HPE and Juniper to open up some code—specifically, Juniper’s Mist AI Ops software, which powers smart wireless networks with advanced automation and analytics. This code has to be licensed out in a one-time public auction. Whoever wins gets a perpetual, non-exclusive license, help with transitions, and even staff if needed so they don’t get left in the dust. The idea is to give a competing company what it needs to build the next generation of WiFi networks and keep a lid on prices and innovation roadblocks.
Corporate Ambitions Meet Competition Safeguards
For HPE, this deal isn’t just about beefing up old business. CEO Antonio Neri has been pointing to the potential in AI-driven networking—think data centers packed with servers, service providers running modern cloud networks, and offices looking for the best speeds and reliability. By pulling in Juniper’s expertise in automation and security, HPE wants to leapfrog traditional networking and grab the momentum in cloud and artificial intelligence infrastructure. Neri’s been pitching the combined company as an agile contender in a “cloud-first” era, ready for massive growth as industries plug into AI.
But the HPE and DoJ settlement makes sure no single player calls all the shots. For any IT manager weighing vendors, it means Cisco and an expanded HPE-Juniper entity won’t be able to squeeze out real competitors or force big changes on pricing and technology. The software licensing part, especially, opens the door to a new wave of challengers who can use the Mist AI tech to develop latest-gen WiFi platforms. It’s a big check on market power and keeps things open for buyers as networks get more AI-driven.
While a judge still needs to officially sign off, nobody’s expecting surprises at this stage. The showdown everyone expected in court has been sidestepped, and HPE now faces the challenge of integrating Juniper while offloading a business and opening up its crown-jewel code. All eyes are now on who steps up to buy the Instant On WLAN business and who bids for the AI Ops software license—because those moves could shape the future landscape of enterprise networking just as much as the merger itself.