U.S. Antitrust Scrutiny Casts Shadow Over Google’s $32 Billion Wiz Acquisition

In the midst of ongoing legal challenges, Google is once again under the microscope as U.S. antitrust authorities examine its proposed $32 billion acquisition of cybersecurity firm Wiz. According to a Bloomberg News report citing sources familiar with the matter, the U.S. Justice Department (DOJ) is currently reviewing whether the deal could illegally stifle competition in the cybersecurity and cloud computing markets.

If finalized, the Wiz acquisition would mark the largest in Alphabet’s history, significantly bolstering the cybersecurity capabilities of Google Cloud. The integration is expected to strengthen the company’s offerings to enterprise clients, particularly in helping businesses tackle critical security threats.

This development comes at a time when Google is already embroiled in multiple legal battles. “A U.S. Judge found in April that Google is liable for ‘willfully acquiring and maintaining monopoly power’ in markets for publisher ad servers and the market for ad exchanges which sit between buyers and sellers.” The ruling added weight to concerns about the tech giant's influence in the digital advertising ecosystem.

While neither Google nor the DOJ offered any public comment on the current review, and Wiz has yet to respond to media inquiries, past regulatory hurdles in the tech space have made both companies cautious. Wiz executives, for instance, have been reportedly concerned ever since Adobe’s proposed $20 billion acquisition of Figma was blocked by regulators in late 2023. In light of that, Google has reportedly agreed to a breakup fee exceeding $3.2 billion should the Wiz deal fall through.

The transaction reportedly picked up momentum after the inauguration of former President Donald Trump, as reported by Reuters. “Reuters reported in March that the deal accelerated after President Donald Trump was sworn into office, with the prospect of a friendlier antitrust review under his administration.”

Trump’s appointments of Andrew Ferguson to lead the Federal Trade Commission (FTC) and Gail Slater to oversee antitrust matters at the DOJ were seen by insiders as favorable to a less aggressive regulatory climate. “Trump’s appointments of Andrew Ferguson to chair the FTC and Gail Slater to helm antitrust reviews at the DOJ also gave executives at both companies more confidence in a smoother regulatory review,” Reuters reported.

Still, the regulatory landscape remains uncertain, particularly as Google faces another major lawsuit from the DOJ over its dominance in online search and advertising technology. With increasing scrutiny around Big Tech acquisitions, the outcome of the Wiz deal could set another important precedent in the tech industry’s antitrust saga.