Google has confirmed it is acquiring the Israeli cloud security firm Wiz for $32 billion. It is one of the largest cybersecurity deals. The acquisition should enhance Google’s cloud security when it competes with Amazon Web Services (AWS) and Microsoft Azure. Still, some regulators are concerned that Google has an overwhelming presence in the market.
Google’s Strategic Move in Cybersecurity
Wiz is a rapidly rising cloud security company that began in 2020. It is presently a market leader in discovering and minimizing security threats in cloud environments. The company’s software enables companies to discover vulnerabilities in their cloud systems, providing robust security across various platforms. Wiz has Fortune 500 companies as customers, which makes it an attractive target for large technology companies to acquire.
Google’s cloud division is expanding rapidly and views acquiring Wiz as a key move to retain its business clients. Google Cloud CEO Thomas Kurian stated, “Security is a top priority for our customers. With Wiz’s next-generation cloud security technology, we can provide additional protection for organizations around the globe.”
The deal is part of Google’s bigger scheme to expand its cybersecurity business, having acquired Mandiant in 2022. Experts in the industry think that the inclusion of Wiz’s technology into Google Cloud Security will give businesses a more robust security solution as they shift to cloud operations.
Regulatory Issues and Antitrust Surveillance
The acquisition is expected to increase Google’s cloud business but has alarmed antitrust regulators in the US and the EU. Google has been under increased scrutiny for its marketplace behavior, with a number of investigations under way into its dominance of digital advertising and search.
Antitrust regulators are concerned that acquiring Wiz would unfairly position Google as a leader in the cloud security industry. This would restrict competition and potentially raise prices for consumers. The U.S. Federal Trade Commission (FTC) and the European Commission are reportedly examining the transaction to determine how it impacts competition in the market.
“Google’s ongoing expansion by acquiring other companies is raising serious competition issues,” an FTC spokesman stated. “We will carefully review this deal to make sure it does not block innovation or block others from competing.”
Other players in the market, like Google’s cybersecurity rivals, worry that Google will utilize its influence to restrict other cloud providers from using Wiz’s technology. Microsoft and AWS, Google’s biggest cloud computing rivals, can also ask regulators to monitor the merger.
What’s in store for Wiz and Google?
In spite of the regulatory challenges, Google is optimistic that the deal will be sanctioned. The company has indicated that it will engage with regulators in order to tackle concerns and fulfill antitrust needs. If sanctioned, the merger would reshape the cybersecurity sector and enhance Google’s position in the cloud space.
For Wiz, the acquisition is a milestone, marking its explosive growth in the sector. CEO and co-founder Assaf Rappaport was excited to be coming aboard at Google, saying, “Together, we will accelerate our mission of securing the cloud and delivering innovative security solutions to customers worldwide.”
While regulators examine the deal, the tech world will be watching intently. Should Google succeed the antitrust hurdle, acquiring Wiz would reconfigure the cloud security market, paving the way for future mergers.
