Attorney General Jeff Jackson Opposes HPE/Juniper Merger Over Corruption Concerns

Companies Could Pay 14 Percent More for Wireless Local Networks

RALEIGH - Attorney General Jeff Jackson opposed a $14 billion merger between tech companies HPE and Juniper Networks because of serious concerns that lobbyists unlawfully pushed through the merger at the U.S. Department of Justice, which will harm consumers. If it goes through, it could raise network infrastructure costs for businesses by up to 14 percent.

"There are real concerns that lobbyists put their thumb on the scale so the federal government would approve a deal that raises prices for North Carolina businesses," said Attorney General Jeff Jackson. "That kind of corruption puts all of us at risk of paying more for things we need. I'm asking the court to scrutinize this deal and reject it if it's not in North Carolinians' interests."

The merger will result in only two firms, HPE and Cisco, controlling over 75 percent of the market for wireless local area network solutions, a critical workplace technology. The Justice Department flagged these issues in its own filings, but still proposed allowing the merger to proceed with minimal concessions.

The court must approve all antitrust settlements from the Justice Department to ensure that the settlements benefit the public. There are real concerns that the department pushed through this settlement even though its own antitrust attorneys opposed it. According to public reports, people with close ties to the president and his administration allegedly lobbied Justice Department leadership. Eventually, the U.S. attorney general's chief of staff pushed the settlement through over many employees' objections and without addressing how the merger will hurt innovation and competition. Two senior antitrust attorneys were fired for opposing the settlement.

Attorney General Jackson is asking the court to hold hearings to look into the settlement and the alleged corruption that may have led to it.

Attorney General Jackson joined the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, New York, Oregon, Rhode Island, Washington, Wisconsin, and the District of Columbia on the letter.

A copy of the letter is available here.

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