WATCH: California seeks investigation into big tech merger

Spread the love

California Attorney General Rob Bonta said Wednesday he was joining 12 other Democratic state attorneys general in intervening in a $14 billion merger between rival technology companies Hewlett-Packard and Juniper Networking.

The new effort follows Bonta’s announcement last month that he opposed the U.S. Department of Justice’s settlement of the merger, which he alleged was the result of backroom deals that were not conducted with transparency and were not in the best interests of the public. He has asked the court reviewing the settlement to allow him and other state attorneys general to allow for a multi-state investigation into the merger.

“We’ll really dig into what were the reasons and the rationale behind this settlement,” Bonta said during a press conference Wednesday. “The U.S. DOJ brought an antitrust challenge to the proposed merger. We thought that was good, but then they settled in a way that didn’t address the concerns outlined in their complaint.”

Bonta also alleged in the news conference that officials from the Trump administration pushed the settlement through, despite the objections of the Department of Justice’s antitrust attorneys. Bonta said they noted the settlement did not address anti-competitive harms in the government’s complaint filed in the merger settlement proceedings.

Two antitrust attorneys appointed during Trump’s time in office were allegedly fired for their opposition to the merger, Bonta said.

“This is troubling to say the least,” Bonta said. “Antitrust enforcement exists to protect consumers, maintain competition and ensure fair markets, not to reward politically-connected companies.”

By intervening in the settlement proceedings, Bonta said he and the other state attorneys general would gain access to merger records, participate in court hearings and ask the court to pause the merger until after the proceedings are over. Without that scrutiny, competition could be harmed, businesses would have fewer choices and infrastructure costs would go up, Bonta said.

According to court documents that the attorneys general filed Tuesday in the U.S. District Court of Northern California, the merger settlement was influenced by well-connected lobbyists, and claims of anticompetitive behavior in the execution of the merger were glossed over by U.S. Department of Justice officials.

“I hope the court blocks the HPE/Juniper merger,” said Principal Deputy Assistant General Roger Alford in a quote included in the Oct. 14 court filing. “If you knew what I knew, you would hope so too.”

The call to participate in a multi-state investigation into the Hewlett-Packard/Juniper merger is part of a larger effort by Bonta to push back on what he has characterized as the Trump administration’s retribution and suppression of speech fueled by political motivations.

He previously called for an end to what he called “a politically-motivated indictment” of New York Attorney General Letitia James by the U.S. Department of Justice, and announced opposition to Federal Communications Chair Brendan Carr’s targeting of broadcast networks that led to late-night talk show host Jimmy Kimmel’s short-lived removal from the airwaves.

“This is one piece of a broader pushback from the state of California,” Bonta said. “We think it’s important to push back and plant flags in the ground on all efforts by the Trump administration to act in ways that are inconsistent with the public interests that seek to punish political enemies and reward political friends.”

However, the Department of Justice defended its decision in the Hewlett-Packard and Juniper Networks merger.

“The Department has consistently reiterated that resolution of this merger was based only on the merits of the transaction,” said DOJ spokesman Gates McGavick in an emailed statement on Wednesday.

Representatives from Hewlett-Packard did not respond to requests for comment by press time on Wednesday.

Besides Bonta in California, the motion for intervention was filed by the attorneys general in Colorado, Connecticut, Hawaii, Illinois, Massachusetts, Minnesota, North Carolina, New York, Oregon, Washington state, Wisconsin and the District of Columbia.

Leave a Comment





Latest News Stories

FBI arrests 34 in NBA, poker gambling probe involving crime families

FBI arrests 34 in NBA, poker gambling probe involving crime families

By Jon StyfThe Center Square Thirty-one people including Miami Heat player Terry Rozier and Portland Trail Blazers coach Chauncey Billups were arrested along with 32 others on Thursday morning in...
Poll: Americans divided on Trump's deportation, immigration policies

Poll: Americans divided on Trump’s deportation, immigration policies

By Andrew RiceThe Center Square Americans are divided on President Donald Trump’s deportation and immigration policies, according to a new poll. The Center Square Voters’ Voice Poll found that 46%...
WATCH: Pritzker to sign exec. order to ‘pursue accountability’ amid federal deployments

WATCH: Pritzker to sign exec. order to ‘pursue accountability’ amid federal deployments

By Greg Bishop | The Center SquareThe Center Square (The Center Square) – In today's edition of Illinois in Focus Daily, The Center Square Editor Greg Bishop starts the program...
Helicopter crash claims lives of Bailey's son, daughter-in-law, grandchildren

Helicopter crash claims lives of Bailey’s son, daughter-in-law, grandchildren

By The Center SquareThe Center Square (The Center Square) – Illinois Republican gubernatorial candidate Darren Bailey’s campaign has released a statement following the death of Bailey’s son Zachary and his...
Illinois quick hits: Pritzker creates commission to hear alleged ICE abuses

Illinois quick hits: Pritzker creates commission to hear alleged ICE abuses

By The Center SquareThe Center Square Pritzker creates commission to hear alleged ICE abuses Through executive order, Illinois Gov. J.B. Pritzker created the Illinois Accountability Commission to take testimony of...
WATCH: WA Senate candidates differ on taxes, parental rights, protecting girls' sports

WATCH: WA Senate candidates differ on taxes, parental rights, protecting girls’ sports

By Carleen JohnsonThe Center Square With less than two weeks before the general election, two candidates for one of the most closely watched races in Washington state are sharing their...
Newsom, Bonta vow suit over National Guard deployment

Newsom, Bonta vow suit over National Guard deployment

By Madeline ShannonThe Center Square Editor's note: This story has been updated since its initial publication. Gov. Gavin Newsom addressed concerns that President Donald Trump is sending federal agents to...
U.S. nuclear stockpile hit with shutdown furloughs

U.S. nuclear stockpile hit with shutdown furloughs

By Liam HibbertThe Center Square All 68 federal employees at a Nevada nuclear stockpile site were furloughed in the wake of the U.S. government shutdown. Some contractors remain at the...
Spokane police chief ordered officers not to work with FBI after June 11 protest

Spokane police chief ordered officers not to work with FBI after June 11 protest

By Tim ClouserThe Center Square Spokane Police Chief Kevin Hall directed officers not to work with the FBI in the days following the June 11 immigration protests, according to records...
Treasury sanctions Russian oil companies, calls for ceasefire

Treasury sanctions Russian oil companies, calls for ceasefire

By Andrew RiceThe Center Square The U.S. Treasury Department announced sanctions against two Russian oil companies on Wednesday. The department cited Russia's "lack of serious commitment" to ending the war...
DOJ: Illegal immigrant charged with assault

DOJ: Illegal immigrant charged with assault

By Dave MasonThe Center Square An illegal immigrant from Mexico was expected to make his first court appearance Wednesday following an arrest in which he rammed law enforcement vehicles before...
Manufacturing advocate: 'Follow the actions' with Pritzker on taxes

Manufacturing advocate: ‘Follow the actions’ with Pritzker on taxes

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – Gov. J.B. Pritzker says he prefers growing the economy over raising taxes, but a small and midsize...
Illinois quick hits: National Guard restraining order extended; economic growth above trend

Illinois quick hits: National Guard restraining order extended; economic growth above trend

By Jim Talamonti | The Center SquareThe Center Square National Guard restraining order extended Following an agreement between the state of Illinois and the federal government, U.S. District Court Judge...
US and Qatar say EU climate regulations could impact LNG supplies

US and Qatar say EU climate regulations could impact LNG supplies

By Alton WallaceThe Center Square The U.S. Department of Energy is urging the heads of State in the European Union (EU) to repeal or significantly change climate regulations adopted in...
U.S. debt tops $38 trillion for first time

U.S. debt tops $38 trillion for first time

By Brett RowlandThe Center Square The U.S. national debt reached $38 trillion amid a partial federal government that costs taxpayers $400 million daily to pay furloughed federal workers to stay...