Attorney General Bonta Opposes $14 Billion HPE/Juniper Networks Merger Settlement Amid Alleged Corrupt U.S. DOJ Approval Process

OAKLAND - California Attorney General Rob Bonta today joined a coalition of 20 attorneys general in opposing the U.S. Justice Department's (U.S. DOJ) proposed settlement in the $14 billion HPE/Juniper Networks merger. The attorneys general urge the judge overseeing the case to hold a hearing to determine if the merger is in the public interest and whether it was obtained through the kind backroom dealing that federal law is intended to prevent.

"Allegations that the Trump Administration approved a $14 billion merger not on its merits or in the interest of the American public, but because of backroom deals with their buddy lobbyists, are extremely alarming. Antitrust enforcement is about protecting the economy for everyone - not about padding the pockets of your friends," said Attorney General Bonta. "As policymakers and leaders, we work for the people, not for the corporations that are looking to profit on their backs. Today, along with sister states across the nation, I urge the court to investigate the approval of the HPE/Juniper merger in light of these troubling allegations and to reject the deal if it's not in the best interest of the American people."

In today's letter to U.S. DOJ, the attorneys general express concern with the department's approval of the merger and ask that the court investigate the settlement and the alleged corrupt process that led to it.

The Tunney Act is a post-Watergate law enacted by Congress in 1974 to ensure that antitrust settlements reached by the U.S. DOJ are based on the merits rather than undue influence by powerful corporations and their well-connected lobbyists. In introducing legislation that came to bear his name, Senator John Tunney quoted Justice Louis Brandeis to explain the bill's purpose: "Sunlight is the best of disinfectants," and thus "sunlight . . . is required in the case of lobbying activities attempting to influence the enforcement of the antitrust laws."

Under the law, U.S. DOJ must seek approval of all antitrust settlements from the courts, and the courts must make independent judgments that a settlement is in the public interest. The attorneys general, who enforce state and federal antitrust laws, argue that publicly available information about the process that led to the HPE/Juniper settlement suggests that the Justice Department has failed to meet that standard in this case. According to public reports, U.S. DOJ trial staff working on the merger case, as well as senior leadership in the Antitrust Division, opposed the HPE settlement. But higher-level political appointees at the department were lobbied by individuals with close ties to the Trump Administration. The chief of staff to the U.S. attorney general then allegedly pushed the settlement through over the objections of the Antitrust Division and in a manner that did not address the anticompetitive harms alleged in the government's complaint. Two senior Antitrust Division attorneys appointed by President Trump's own administration allegedly were fired for opposing the settlement.

In sending today's letter, Attorney General Bonta joined the attorneys general of Colorado, Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, Wisconsin, and the District of Columbia.

A copy of the letter can be found here.