Hewlett Packard’s Juniper Networks Acquisition Under CMA Investigation

The UK’s competition watchdog is investigating Hewlett-Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks due to market competition concerns.

HPE officials announced their intention to acquire Juniper Networks, a prominent networking gear producer, aiming to bolster its AI initiatives. The company expects the acquisition to double its networking business and anticipates finalizing the deal either by the end of the fiscal year or the beginning of 2025. HPE is actively communicating with the UK watchdog to complete the reviews and secure clearance for the deal without necessitating a deeper probe. The Competition and Markets Authority (CMA) has until August 14 to determine if a more extensive investigation is required.

It is not the only merger raising competition concerns amid the increasing emphasis on AI adoption and readiness. As companies strive to stay competitive in the expanding AI landscape, mergers and partnerships have drawn attention from competition watchdogs concerned about the growing dominance of big tech.

Microsoft and OpenAI’s partnership, potentially one of the most significant, has also faced scrutiny from the CMA, which fears that the collaboration could stifle smaller firms attempting to establish themselves in the burgeoning AI market.

The CMA’s investigation into HPE and Juniper Networks is underway, with the authority currently inviting comments from interested parties regarding whether the merger could “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”