President Trump’s second-term antitrust message couldn’t be clearer: Corporate monopolists who rig markets against working families, small businesses, and American interests have no place in a free economy.
That message found an early test last week — not through a bold new initiative, but by killing off a weak, leftover lawsuit from the Biden administration that threatened to derail Trump’s strategic antitrust agenda before it gained traction.
The Trump administration sent a clear message: America’s antitrust vision defends free markets and strong competition — not bureaucratic box-checking.
On Friday, the Trump Justice Department moved to dismiss the government’s misguided attempt to block the merger between Hewlett Packard Enterprise and Juniper Networks. The lawsuit, filed in the final hours of the Biden administration, posed risks far beyond its narrow legal merits.
Had it gone to trial, it likely would have been dismissed — not because antitrust enforcement is unimportant, but because the case itself rested on flimsy legal grounds. That kind of early defeat would have undercut the Justice Department’s credibility just as Trump’s new antitrust team gets to work.
As a former state attorney general and an America First-minded lawyer, I know the value of strong antitrust enforcement. But strength requires discernment. Pursuing a weak case does more harm than good. It invites judicial setbacks, undermines future enforcement, and wastes political capital needed for tougher fights ahead.
The lawsuit was also strategically reckless. I dealt with the threat posed by Chinese state-controlled telecom giant Huawei during my time at the Department of Homeland Security. Huawei, closely tied to the Chinese military, aims to displace U.S. firms and infiltrate global infrastructure. That’s why the U.S. banned the company, and our allies followed suit.
The HPE-Juniper merger would strengthen America’s ability to counter Huawei’s dominance. Blocking it would have weakened two U.S. companies trying to compete globally — and handed a gift to both Huawei and entrenched domestic players like Cisco.
Even viewed narrowly under U.S. antitrust law, the case faltered. The merged company wouldn’t control even 25% of the relevant domestic market and would still trail Cisco in key sectors like wireless local area networks. Analysts found no credible evidence of future price hikes or innovation slowdowns. On the contrary, the merger could spur real competition — especially against Cisco, whose dominance persists despite lackluster performance.
The European Union, no friend to large corporate combinations, approved the deal. EU regulators found widespread agreement among competitors, distributors, and customers that the merger posed no anticompetitive threat. Cisco would remain twice the size of the new entity in WLAN, with at least seven other players still in the market — and recent entries showing the sector’s low barriers to entry.
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That context matters. Cisco’s market power, despite inferior performance, reflects broader integration advantages — not consumer preference alone. Importantly, WLAN sales represent just one-sixth of the merged company’s total revenue.
Antitrust should focus on competitive strength across the industry, not just the size of the firms involved. As FTC Commissioner Mark Meador argued in his recent paper, “Antitrust Policy for the Conservative,” the key question is whether other firms can still compete — and they can. Market analysts agree this merger would promote, not stifle, competition and innovation.
The Justice Department should never have filed this case. That it came from the Biden team, just before Trump’s leadership arrived, makes its dismissal all the more welcome.
Had it gone forward, the lawsuit could have weakened America’s antitrust credibility, emboldened foreign adversaries like China, and limited future enforcement under Section 7 of the Clayton Act, which prohibits mergers where the effect “may be substantially to lessen competition, or to tend to create a monopoly.” Judges don’t forget weak cases.
The consumer welfare standard still matters — and by that measure, the merger passes easily. Consumers surveyed by European regulators expressed no concerns about pricing or choice. The Biden Justice Department’s complaint contradicted the very principles now guiding Trump’s antitrust revival.
Dropping the case is both sound policy and smart politics. The Trump administration avoided a legal embarrassment, protected national security interests, and sent a clear message: America’s antitrust vision defends free markets and strong competition — not bureaucratic box-checking.
Kudos to the Trump Justice Department for making the right call.
