"Google Back in Talks to Buy Wiz: A Test for Trump's Antitrust Agenda"

Google’s potential acquisition of Wiz, a leading cybersecurity company, is more than just another corporate deal. It’s a litmus test for the Trump administration’s antitrust policies, particularly under the new leadership of FTC Chairman Andrew Ferguson. The stakes are high, and the outcome could reshape the landscape of Big Tech mergers and acquisitions.



Ferguson’s appointment as FTC Chairman signals a shift in antitrust enforcement. Unlike his predecessor, Lina Khan, who was known for her aggressive stance against mergers, Ferguson views antitrust enforcement as a facilitator of innovation. He believes that government intervention is necessary to protect workers and prevent the misuse of market power. This nuanced approach could mean that Google’s acquisition of Wiz will face rigorous scrutiny, but not necessarily an outright ban.

The Trump administration has made it clear that antitrust enforcement in the technology sector will remain a priority. Several major enforcement actions against large technology companies, including Google, were pending at the time of the inauguration. The administration’s decision to sue to block the $14 billion acquisition of Juniper Networks by Hewlett Packard Enterprise indicates that it is willing to take legal action to prevent anticompetitive mergers.

Ferguson’s views on Big Tech are particularly relevant. He has expressed concern with the market power of Big Tech companies being leveraged to gain social or political control. This concern could be a significant hurdle for Google, as regulators might view the acquisition of Wiz as an attempt to consolidate market power and control. Ferguson’s statement that "because markets are not self-correcting, government intervention on behalf of human flourishing and the protection of workers is necessary" underscores the administration’s commitment to protecting consumers and workers from the potential harms of corporate consolidation.

The merger review process will also be a key factor. The FTC and DOJ will continue to use the 2023 Merger Guidelines as the framework for their merger review process. These guidelines provide a stable framework for reviewing mergers, but they are not perfect. The agencies may revisit portions of the guidelines later, indicating that the review process could be subject to change. This could create uncertainty for Google as it navigates the merger review process.

The potential for litigation is another concern. The Trump administration is expected to return to a more pragmatic approach that will enable parties to more readily "fix" deals, rather than face an all-or-nothing approach. However, this does not mean that litigation is off the table. The administration has sued to block the $14 billion acquisition of Juniper Networks by Hewlett Packard Enterprise, indicating that it is willing to take legal action to prevent anticompetitive mergers.

The outcome of this acquisition could have significant implications for future merger and acquisition activities in the technology sector. The Trump administration’s decision to challenge the HPE-Juniper Networks acquisition sends a clear signal that antitrust enforcement will continue to be a priority, particularly in the technology sector. This could lead to more settlements and remedies rather than outright approvals, potentially leading to a more conservative approach to M&A in the technology sector.

In conclusion, Google’s acquisition of Wiz is a test for the Trump administration’s antitrust agenda. The outcome will depend on a variety of factors, including the administration’s views on Big Tech, the merger review process, and the potential for litigation. The stakes are high, and the outcome could reshape the landscape of Big Tech mergers and acquisitions. The administration’s continued focus on the technology sector, concerns about market power and control, and the potential for litigation all indicate that Google will need to navigate a complex regulatory landscape to complete the acquisition.