Massive cybersecurity deal draws attention from U.S. antitrust regulators

In what could become one of the largest cybersecurity acquisitions in history, Google’s proposed $32 billion deal to acquire Israeli cloud security startup Wiz has reportedly triggered an antitrust review by U.S. regulators. The review, led by the Federal Trade Commission (FTC), aims to examine whether the acquisition could reduce market competition or reinforce Google’s dominance in the cloud computing sector.

FTC Steps In Amid Growing Concerns Over Tech Consolidation

The FTC’s involvement reflects broader regulatory concerns over Big Tech consolidating power through high-value mergers. Regulators are expected to assess the potential impact of the acquisition on enterprise cloud security, especially considering Google’s expanding footprint in cloud services through Google Cloud Platform (GCP). The FTC may also investigate whether Wiz’s integration into Google could lead to anti-competitive practices such as reduced interoperability or preferential treatment for Google’s products.

Wiz: A Rising Force in Cloud Security

Founded in 2020 by former Microsoft executives, Wiz has rapidly become a leader in cloud-native security, with high-profile clients like Salesforce, BMW, and Morgan Stanley. The company specializes in providing advanced visibility and threat detection tools across multi-cloud environments. With this acquisition, Google aims to significantly bolster its cybersecurity offerings and challenge competitors like Amazon Web Services and Microsoft Azure.

Google’s Strategic Push in Cybersecurity

The Wiz deal underscores Google’s commitment to investing in cybersecurity, especially after increased demand for secure digital infrastructure in the post-pandemic era. This move follows previous cloud-security-related acquisitions, such as Mandiant in 2022. If approved, integrating Wiz’s platform could enhance Google's capabilities in securing hybrid and multi-cloud systems, giving it an edge in enterprise markets.

A Precedent for Future Tech Deals?

While Google and Wiz have yet to release official statements on the antitrust probe, insiders suggest that the regulatory process could delay or even reshape the terms of the deal. The outcome may set a precedent for future mergers in the tech industry, particularly in fast-growing fields like cybersecurity and cloud services.

As the review unfolds, industry watchers and competitors alike will be closely monitoring whether regulators allow the deal to proceed — and under what conditions.