Attorney General Kwame Raoul announced on Mar. 16 that he joined a group of 13 attorneys general in filing a court brief to oppose the $14 billion merger settlement between Hewlett Packard Enterprises and Juniper Networks, two major wireless networking equipment providers in the United States.
The coalition argues that the proposed settlement would harm competition, raise prices, and reduce innovation for consumers. The attorneys general claim the process leading to the settlement was influenced by improper lobbying at high levels within the Department of Justice.
“The proposed settlement does not address the concerns we raised in October: that this merger will drastically limit competition to allow the remaining dominant firms in the wireless networking equipment market to raise prices and reduce innovation,” Raoul said. “I will continue to use my authority to enforce state and federal antitrust laws that encourage competition and protect consumers.”
According to court filings, Raoul and his colleagues say that combining Hewlett Packard Enterprises with Juniper Networks would create a highly concentrated market dominated by just a few companies, including Cisco. They allege that instead of defending its position in court, HPE hired lobbyists who bypassed antitrust experts at the DOJ, resulting in a deal that did not address competitive harms. The filings also mention threats against DOJ officials involved in reviewing the merger and claim information was withheld from required disclosures about alternative remedies considered during negotiations.
The coalition is urging the court to reject the settlement under the federal Tunney Act, which requires antitrust settlements reached by the DOJ to be based on merit rather than undue influence from corporations or lobbyists. Joining Raoul are attorneys general from California, Colorado, Connecticut, District of Columbia, Hawaii, Massachusetts, Minnesota, North Carolina, New York, Oregon, Washington and Wisconsin.
The Illinois Attorney General has advocated for vulnerable groups such as workers, immigrants and seniors according to its official website. The office handles thousands of consumer complaints each year according to its official website and aims to protect consumers while promoting safer communities as well as environmental and rights issues according to its official website. Its advocacy efforts extend across Illinois according to its official website, partnering with law enforcement agencies to support crime victims and promote open government according to its official website. The office also offers services such as complaint filing for consumer fraud and civil rights matters according to its official website.
Looking ahead, Raoul said he remains committed to enforcing antitrust laws designed to encourage competition and protect consumers.
