California Attorney General Rob Bonta issued a statement expressing disappointment after a federal court approved the U.S. Department of Justice’s settlement of the $14 billion merger between Hewlett Packard Enterprise (HPE) and Juniper Networks, according to an official announcement from the California Office of the Attorney General.
States Had Challenged the HPE-Juniper Settlement
The U.S. District Court for the Northern District of California approved the DOJ’s proposed settlement, which Bonta and a coalition of 13 other state attorneys general had opposed. The coalition had intervened in the merger proceedings last year, raising concerns about alleged backroom dealings between DOJ officials and lobbyists and arguing the settlement was not in the best interest of the American public.
In his statement, Bonta noted that the court itself described the DOJ’s deal as a “limited” settlement approved under duress, after the Trump Administration threatened to dismiss the lawsuit entirely. Bonta argued this left the public with no remedies to address potential anticompetitive harms.
Despite approving the settlement, the court acknowledged in its order that the states’ participation in the proceedings “advanced the public interest in transparency” and helped the public understand how federal officials conducted settlement negotiations. The court further noted that without the states’ involvement, the public would not have learned that DOJ leadership overrode the opinions of Antitrust Division staff or that alternative settlement proposals had been considered and rejected.
Antitrust Concerns Extend Beyond the HPE-Juniper Deal
According to the attorney general’s announcement, public reports indicate that DOJ trial staff and senior Antitrust Division leadership opposed the HPE/Juniper settlement. Higher-level political appointees at the department were allegedly lobbied by individuals with close ties to the Trump Administration, and the Chief of Staff to the U.S. Attorney General allegedly pushed the settlement through over those internal objections. Two senior Antitrust Division attorneys appointed by the Trump Administration were allegedly fired for opposing the settlement.
Bonta also referenced other recent merger decisions by the Trump Administration — including approvals involving Nexstar and Tegna, Warner Bros. and Paramount, and a settlement with Live Nation/Ticketmaster — stating that in each case, his office and a coalition of states have continued efforts to protect consumers.
The court’s approval allows the DOJ settlement to stand despite the states’ objections. The settlement requires HPE to divest its Instant On wireless networking business and license Juniper’s AI Ops for Mist source code through an auction, remedies the DOJ says are intended to preserve competition following the acquisition.
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