California Attorney General Rob Bonta announced that the U.S. District Court for the Northern District of California has allowed California and 12 other state attorneys general to intervene in the review of the U.S. Department of Justice’s (DOJ) settlement regarding the $14 billion merger between Hewlett Packard Enterprises (HPE) and Juniper Networks. The court’s decision permits these states to take part directly in proceedings to determine if the settlement serves the public interest.
Bonta commented on the court’s order, stating, “Last month, amid allegations of backroom dealings, California and our sister states asked the court to allow us to intervene in the HPE/Juniper merger, approved by U.S. DOJ. We are pleased that the court has granted our motion and are ready to step in and stand up for fairness, transparency, and the integrity of government — ensuring that the public interest, not private influence, guides the outcome.” He added, “This is about more than one merger; this case raises serious questions about the integrity of government processes. Antitrust enforcement exists to protect consumers and ensure fair markets, not to reward politically connected companies — let’s find out if that was the case here.”
Reports indicate that both DOJ trial staff and senior leadership within its Antitrust Division initially opposed settling with HPE and Juniper Networks and had filed a lawsuit seeking to block the merger. However, political appointees at higher levels within DOJ reportedly faced lobbying from individuals with ties to former President Trump’s administration. It is alleged that a Chief of Staff at DOJ pushed through approval of a settlement over objections from antitrust officials and without addressing concerns raised in DOJ’s own complaint about potential anticompetitive effects.
Further claims suggest two senior attorneys within DOJ’s Antitrust Division were dismissed after opposing this settlement under Trump Administration leadership. The settlement ultimately did not resolve issues highlighted in DOJ’s original complaint against the merger.
Attorney General Bonta has previously voiced opposition to how DOJ handled this case and requested in October that both California and other states be permitted direct involvement in proceedings reviewing whether or not merging should proceed while an investigation continues into its merits.
