Chicago – Illinois Attorney General Kwame Raoul has aligned himself with a coalition of state attorneys general aiming to intervene in a contentious $14 billion merger settlement involving Hewlett Packard Enterprises (HPE) and Juniper Networks. This group is requesting that a federal court take a closer look at the agreement due to allegations of undue influence and potential anticompetitive dangers.
The states are urging the court to utilize its powers under the federal Tunney Act, a law established after Watergate to ensure that antitrust settlements negotiated by the U.S. Department of Justice (DOJ) are founded on merit rather than corporate lobbying or political pressure. In particular, the coalition is advocating for the court to conduct an evidentiary hearing, allowing the states to engage as full participants.
“As the Justice Department itself alleges, this merger has the potential to drastically limit competition and substantially increase prices for consumers,” Illinois Attorney General Kwame Raoul said in a statement. “I join my colleagues in asking that the court put the public’s interests first to ensure they are not saddled with higher costs from a merger that was reportedly the product of influence peddling and backroom dealmaking.”
“Allegations that the Trump Administration approved a $14 billion merger because of backroom deals with their buddy lobbyists are extremely alarming. Regulators from across the political spectrum have argued that the Trump Administration’s approval of the HPE/Juniper merger is inadequate and potentially the result of backroom deals. As policymakers and leaders, we must wield the power of our offices for the good of the people — not to line the pockets of friends or prosecute people we do not agree with,” said Califonia Attorney General Bonta. “Today, we take action and ask the court to allow California and other states to participate in the court’s investigation of the HPE/Juniper merger settlement as it determines if the approval is in the best interest of the American people. My office is fully prepared to engage in the investigation — it is our duty to ensure the Trump Administration is using their power lawfully.”
Last month, Raoul and several other attorneys general sent a letter to the DOJ, voicing their concerns regarding reports that the settlement was influenced more by political pressure than by antitrust principles. The states contend that the remedies specified in the DOJ’s settlement do not sufficiently address the competitive harms posed by the merger.
The motion to intervene, which was filed today, highlights the important role that states play in enforcing federal antitrust laws and safeguarding consumers. The coalition argues that without their participation, the Tunney Act proceeding would be significantly biased, with only those parties in favor of the deal having a say in court.
Should they be permitted to intervene, the states assert that they would be in a stronger position to contest the merger in court if the settlement is deemed inadequate or detrimental to the public.
“Antitrust settlements should be based on the merits, consistent with the law, and in
the public interest,” said Wisconsin Attorney General Josh Kaul. “The proposed resolution in this
matter should be carefully scrutinized.”
“When huge corporations cut deals that reshape entire industries, the public deserves to know those decisions were made on the merits — not behind closed doors,” said Oregon Attorney General Dan Rayfield. “We’re stepping in to make sure this process is fair and that working people and small businesses aren’t the ones left holding the bag.”
“If there were ever a settlement that demanded a thorough investigation and an evidentiary hearing under the Tunney Act, it is this one between HPE and Juniper Networks. We are asking to intervene in this case because the public deserves transparency on what happened in this case and to ensure that high-ranking government officials follow the law during merger reviews, make decisions on the merits, and are not influenced by politically connected lobbyists,” said Colorado Attorney General Weiser.
Alongside Illinois, the motion has been supported by attorneys general from California, Colorado, Connecticut, the District of Columbia, Hawaii, Massachusetts, Minnesota, North Carolina, New York, Oregon, Washington, and Wisconsin.
The HPE-Juniper merger has come under scrutiny from consumer advocates and legal experts, many of whom caution that this consolidation could hinder competition in the networking and IT infrastructure sectors.
The court has yet to make a decision regarding the motion to intervene.
