Hewlett Packard’s acquisition of Juniper Networks under investigation by CMA

Due to concerns about market competition, the UK competition authority is investigating Hewlett-Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks.

HPE officials have announced their intention to acquire Juniper Networks, a leading manufacturer of networking equipment, to bolster its AI initiatives. The company expects the acquisition to double its networking business and expects to close the deal either by the end of the fiscal year or in early 2025. HPE is in active contact with the UK regulator to complete checks and get clearance for the deal without the need for a more in-depth investigation. The Competition and Markets Authority (CMA) has until August 14 to decide whether a more comprehensive investigation is necessary.

It’s not the only merger to raise competition concerns given the increasing importance of AI adoption and deployment. As companies seek to remain competitive in the growing AI landscape, mergers and partnerships have attracted the attention of competition watchdogs concerned about the growing dominance of big tech companies.

The partnership between Microsoft and OpenAI, which is potentially one of the most significant, has also been viewed critically by the CMA, which fears that the collaboration could hamper smaller companies trying to establish themselves in the emerging AI market.

The CMA’s investigation into HPE and Juniper Networks is ongoing. The authority is currently seeking comments from interested parties on whether the merger “could lead to a significant lessening of competition in one or more markets in the United Kingdom for goods or services”.