Hewlett Packard Enterprise Co HPE shares are trading lower Thursday after the U.S. Department of Justice (DOJ) filed an antitrust lawsuit to block its proposed $14 billion acquisition of Juniper Networks.

What To Know: According to Bloomberg, the DOJ argues the deal would significantly reduce competition in the enterprise wireless networking market by consolidating three major players — HPE, Juniper and Cisco Systems — down to two, with Cisco and a merged HPE-Juniper entity controlling approximately 70% of the market.

Regulators claim this level of concentration would limit customer choice, potentially leading to higher prices and slower innovation, particularly for large enterprises, universities and hospitals that rely on advanced networking infrastructure.

The lawsuit places both companies in a prolonged legal battle that could take months to resolve. HPE and Juniper have both pushed back against the DOJ's claims, arguing that the merger would actually enhance competition by strengthening their ability to challenge Cisco's dominance. They maintain that the deal would create a more viable alternative for customers and drive innovation in networking technology rather than hinder it.

The DOJ’s action signals an aggressive stance on corporate mergers, making this the first major antitrust challenge of President Donald Trump's current administration. The case is expected to play out over the coming months, with a final decision anticipated by Oct. 2025. If the court sides with regulators, HPE and Juniper may have to restructure the deal or abandon it entirely, while a successful defense could set a precedent for future consolidation in the tech sector.

HPE Price Action: Hewlett Packard shares closed Thursday down 2.12% at $21.19, according to Benzinga Pro.

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