Seven months ago, Alphabet, Google ’s parent company, lost a major lawsuit against the Justice Department under former President Joe Biden, accusing it of maintaining an illegal monopoly in search. Not long before that, Google’s attempt to buy cybersecurity company Wiz fell through, in part over antitrust concerns. Now, with Donald Trump back in the White House, Alphabet is on the offensive.

google wiz dig.watch
Google's purchase of Wiz is one of the important tests for the administration of US President Donald Trump. Photo: Dig.watch

On March 18, Alphabet agreed to acquire Wiz for $32 billion in cash, nearly $10 billion more than it had proposed in mid-2024. The deal is expected to close next year, subject to regulatory approval.

Wiz will be merged into Google's cloud division, which is separate from online search. Google is currently behind Amazon and Microsoft in cloud infrastructure, making it difficult for any government to legally oppose the deal.

Under Lina Khan, the Federal Trade Commission (FTC) became known for its tough stance on technology deals, frequently blocking mergers and acquisitions (M&A).

Google's pursuit of Wiz could become the first major challenge for new FTC Chairman Andrew Ferguson and a test of Trump 2.0's approach to regulating the tech sector.

Under the Biden administration, Google’s biggest M&A deal was the $5.4 billion acquisition of security company Mandiant. Meanwhile, Microsoft spent 21 months battling regulators, including the FTC, to complete its $69 billion acquisition of game publisher Activision Blizzard in late 2023. The FTC also sued to block Meta’s acquisition of virtual reality company Within, but the court rejected that effort.

Additionally, Meta, Apple, Amazon, and Microsoft have all been accused by the Justice Department or the FTC of engaging in monopolistic behavior.

Google spends $32 billion 'cash' to acquire Israeli cybersecurity startup Google spends $32 billion 'cash' to acquire Israeli cybersecurity startup

“This will be a key test and indicator of M&A deals in 2025,” said Brad Haller, senior partner at consulting firm West Monroe.

The timing of the deal's announcement earlier this year suggests it could be used as a gauge of the new administration's regulatory policies, CNBC reported.

Google declined to comment, but Wiz’s appeal seems worth the risk. Founded in 2020, Wiz has reached $100 million in annual revenue in just 18 months, thanks to cloud security products that have become increasingly essential as AI advances, fueling the rise of sophisticated cyberattacks.

The deal is sure to face scrutiny, but analysts say Google has a stronger case than consumer-focused acquisitions, given that it accounts for less than 15% of the cloud services market.

However, Jonathan Kanter, former assistant attorney general for antitrust, warned that the approval process will not be easy, as the massive amount of data Google controls is also an important factor to consider.

Meanwhile, in an interview on Squawk Box, FTC Chairman Andrew Ferguson asserted: “President Trump appointed me to protect Americans in the marketplace. And I said from day one, Big Tech is one of our top priorities, and that remains true.”

(According to CNBC, Bloomberg)