Antitrust Scrutiny Puts Google-Wiz Deal at Risk

The U.S. Department of Justice is reviewing Google’s proposed $32 billion acquisition of cloud security firm Wiz, raising fresh questions about antitrust compliance in the tech sector, according to CRN. The outcome could impact Google’s cloud strategy and cost the company a $3.2 billion breakup fee if the deal is blocked. The probe comes amid growing regulatory pressure on large technology firms expanding their influence across adjacent markets.

This deal, Google’s largest to date, arrives at a time when the company is already under fire for anticompetitive practices in its advertising business. Regulators are reportedly concerned that the Wiz acquisition could lead to reduced competition in the cybersecurity market, particularly if Google decides to bundle Wiz’s offerings with its cloud services to limit customer choice or undercut rivals.

Wiz, a fast-growing player in the cloud security space, would give Google Cloud a significant edge as it competes with AWS and Microsoft Azure. But the DOJ is weighing whether this type of vertical integration could distort the cloud security landscape, especially if Google uses its platform position to steer customers toward its newly acquired tools while sidelining competitors.

For managed security providers (MSPs and MSSPs), the deal’s uncertainty leaves questions about vendor neutrality, product integration, and long-term partner opportunities. If approved, the acquisition could create new possibilities around multi-cloud security orchestration—yet it could also limit the availability of best-of-breed, standalone options in the security stack. The antitrust review will be closely watched by security vendors and partners alike.