Hewlett Packard Enterprise’s acquisition of Juniper Networks advances with UK approval

Hewlett Packard Enterprise’s Acquisition of Juniper Networks Advances with UK Approval

Hewlett Packard Enterprise (HPE) has cleared a significant regulatory hurdle in its planned acquisition of Juniper Networks, following the approval from the UK’s Competitions and Markets Authority (CMA). This development brings HPE closer to finalising the deal which was initially announced in January 2024.

The CMA’s case page for the acquisition was updated to reflect that it has “cleared the anticipated acquisition by Hewlett Packard Enterprise Company of Juniper Networks”, effectively signalling the end of the investigation in the UK. This approval follows a similar green light from the European Union last week, with EU regulators asserting that the sector can withstand competition changes resulting from the merger.

The primary aim of the acquisition is to bolster HPE’s position in the market for AI and hybrid cloud applications by integrating Juniper’s advanced networking solutions. This move is set to significantly expand HPE’s networking division, which already includes Californian-based Aruba Networks, purchased for $3 billion in 2015.

However, the merger has faced scrutiny amid concerns that the consolidation could reduce market options for consumers, particularly through the potential elimination of overlapping products between Juniper and Aruba. Despite this, the CMA has deemed the deal acceptable, with a detailed report on their decision expected to be published soon.

With UK and EU approvals secured, HPE now awaits the decision of the US Federal Trade Commission (FTC). If the FTC grants approval, the deal is anticipated to close by early 2025, marking a significant shift in the landscape of AI and hybrid cloud solutions.

Federal Judge Rules Google Maintained Monopoly in Search Market

In a landmark ruling, Judge Amit Mehta of the U.S. District Court for the District of Columbia has determined that Google violated antitrust laws to maintain its monopoly in the search market. The comprehensive 277-page decision, delivered on Monday, marks the most significant antitrust ruling against a major technology firm since the court decision against Microsoft in 2000.

Judge Mehta concluded that Google breached Section 2 of the Sherman Act, an antitrust law enacted in 1890. This ruling challenges one of Big Tech’s main defences against regulation, which argued that existing antitrust laws are outdated for addressing the rapidly evolving tech industry.

This case is part of a broader wave of antitrust actions against Big Tech companies including Meta, Amazon, and Apple. Google contended that the dynamics of the internet, shaped by innovations such as TikTok and AI developments, negated their monopoly status. Yet, the Court’s decision reflects a growing sentiment that traditional antitrust laws can indeed adapt to contemporary technological contexts.

For years, antitrust scrutiny primarily focused on consumer prices, allowing services like Google’s search engine and Facebook to operate largely unchallenged due to their free-to-use models. However, as these firms accumulated immense wealth and influence, calls for a reassessment of antitrust approaches have intensified. Judge Mehta’s ruling could influence other pending cases against major tech entities.

Notably, other high-profile antitrust cases are proceeding, including the Justice Department’s lawsuit against Apple regarding its control over app developers and the FTC’s cases against Amazon and Meta for allegedly stifling competition. Google’s intention to appeal the ruling to the U.S. Court of Appeals may significantly impact future antitrust jurisprudence concerning tech giants.

UK’s CMA Investigates Amazon’s $4 Billion Investment in Anthropic

The UK’s Competition and Markets Authority (CMA) has initiated a preliminary investigation into Amazon’s $4 billion investment in the US artificial intelligence start-up Anthropic. Announced in March 2024, the deal included a commitment for Anthropic to employ Amazon Web Services (AWS) as its primary cloud provider for critical workloads.

The CMA stated it has “sufficient information” to begin an initial inquiry, aimed at determining whether this partnership constitutes a relevant merger situation that warrants further scrutiny. This step follows a similar recent investigation into Google’s collaboration with Anthropic and is part of the CMA’s broader focus on AI sector tie-ups.

An Anthropic spokesperson emphasized the firm’s independence, stating that Amazon’s investment and their strategic partnership do not compromise corporate governance nor limit Anthropic’s ability to engage with other partners. Amazon, meanwhile, expressed disappointment over the CMA’s continued probe, arguing that its collaboration with Anthropic enhances competition in the burgeoning AI sector.

This investigation forms part of a series of CMA actions examining the alliances between major tech companies and AI start-ups. In April, the CMA reported concerns over potential risks to open competition in the AI market due to a network of partnerships and investments by big tech firms such as Alphabet, Amazon, Apple, and Microsoft.

Amazon, alongside participating in this regulatory examination, maintains that its investment will fund the development of competitive AI models crucial for this emerging industry. Both Amazon and Anthropic have indicated their intentions to cooperate fully with the CMA’s inquiries.