Google's ambitious plan to acquire cloud cybersecurity company Wiz for an estimated $32 billion, what would be its largest acquisition to date, is now under review by antitrust enforcers at the U.S. Justice Department (DOJ). Reports indicate that authorities are examining whether the deal could illegally stifle competition in the cybersecurity marketplace, adding another layer of regulatory complexity for the tech giant.

The proposed acquisition, if approved, would integrate Wiz's cutting-edge cloud security solutions into Google's cloud unit. This move is seen as a strategic step by Google to bolster its cybersecurity offerings and enhance its competitive standing against rivals like Amazon Web Services (AWS) and Microsoft Azure in the rapidly growing cloud computing sector. Wiz, an Israeli-American company founded in 2020, has quickly risen to prominence with its agentless cloud security platform, designed to help businesses identify and mitigate critical risks across various cloud environments.

The $32 billion valuation for Wiz signifies a substantial increase from previous reported discussions, which had seen an earlier bid from Google at around $23 billion in 2024 fall through, reportedly due to initial antitrust concerns. The current renewed discussions and the increased valuation highlight the strategic importance Google places on acquiring Wiz's capabilities. It's also reported that Google has agreed to pay Wiz a fee exceeding $3.2 billion if the deal ultimately fails to close, indicating the high stakes involved for both parties.

Sources familiar with the matter suggest that Wiz executives were particularly wary of antitrust roadblocks, especially after witnessing Adobe's $20 billion attempt to acquire Figma collapse in late 2023 due to regulatory scrutiny. The current political climate and the Biden administration's tougher stance on large tech mergers have created an environment where such deals face heightened examination. However, some reports also indicate that appointments to key antitrust leadership roles under a potential future Trump administration, seen as more amenable to large tech mergers, may have provided renewed confidence for both Google and Wiz to pursue the deal.

This antitrust review comes at a challenging time for Google, which is already embroiled in multiple lawsuits with the DOJ concerning its alleged monopolistic practices in online search and advertising technology. In April, a U.S. Judge found Google liable for "willfully acquiring and maintaining monopoly power" in certain ad tech markets. This existing legal pressure means any new large acquisition by Google will undoubtedly face intense scrutiny, as regulators look to prevent further concentration of power in the tech industry.

The DOJ's investigation will likely focus on whether combining Google's vast resources and market reach with Wiz's specialized cybersecurity expertise would create an unfair advantage, potentially harming smaller competitors or limiting innovation in the cloud security space. The outcome of this review will be keenly watched by the entire tech industry, as it could set a precedent for future large-scale mergers and acquisitions in the rapidly evolving digital landscape. Both Google and the DOJ have declined to comment on the ongoing review, while Wiz has not yet responded to requests for comment.