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Civil Society Organizations Express Concerns Over Potential Impact of Google-Wiz Deal on Cloud Security
A coalition of civil society organizations has voiced significant concerns regarding Google’s proposed acquisition of Wiz, arguing that it could severely diminish competition in the cloud and cybersecurity sectors.
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The organizations have called on the European Commission to undertake a comprehensive antitrust analysis of the $32 billion transaction, cautioning that it may jeopardize multi-cloud neutrality, increase vendor lock-in for customers, and further entrench Google’s expansive digital infrastructure. The European Commission is scheduled to make a decision on February 10 regarding whether to pursue a more detailed examination or to approve the deal uncontested.
In a submission to the European Commission, groups including the Balanced Economy Project and the Open Markets Institute highlighted that Google’s acquisition of Wiz, a leading multi-cloud security provider, could create an environment conducive to stifling competition in both cloud and cybersecurity domains. They state, “This concentration allows Google, a hyper-scale cloud provider, to gain control over a pivotal security layer, incentivizing tactics that could disadvantage competitors.”
Reports indicate that in June, U.S. Justice Department antitrust officials met with representatives from both Google and Wiz, along with competing firms and users, to evaluate whether the deal could unlawfully curb competition. Following these discussions, Wiz’s CEO, Assaf Rappaport, reported in November that the company successfully navigated the Justice Department’s antitrust review process. Information Security Media Group reached out to both Google and Wiz for comments but received no responses.
Through the acquisition of Wiz, the organizations argue, Google would not only gain access to a critical infrastructure component that serves various competing clouds—such as AWS and Azure—but also leverage it to enhance the Google Cloud platform’s performance and market position to the detriment of rivals. They caution that this could lead to customer lock-in, as once firms integrate Wiz into their operations, they would be less inclined to switch to competitors, even when better alternatives are available.
The coalition asserts, “This acquisition risks entrenching Google’s power within the digital ecosystem, in turn diminishing available options for European enterprises and governments.” They emphasize that cloud security tools have become integral to daily operations in various sectors, raising concerns that reliance on Google may inhibit customer mobility between providers and vendors, ultimately harming competition.
The organizations further worry about how the insights obtained from Wiz’s security telemetry across multiple clouds might provide Google an unfair advantage in product development. Utilizing this information, Google could tailor its offerings to exploit competitors’ vulnerabilities while optimizing its market strategy, thereby reinforcing its position in both cloud computing and cybersecurity ecosystems.
The potential ramifications of this deal underscore the need for an in-depth review by the European Commission. Given the growing reliance on cloud computing and cybersecurity services across multiple sectors, ensuring fair competition is critical, especially in light of past outages and cybersecurity incidents affecting major cloud providers. The coalition emphasizes that this situation demands careful scrutiny, noting, “A resolution through unconditional Phase I clearance is insufficient for a matter of this complexity.”
As the February 10 deadline approaches, the call for broader stakeholder input is imperative to evaluate the impact of the Google-Wiz acquisition on competition, innovation, and market resilience in the European Union.