The European Commission has approved Google’s $32bn acquisition of cloud security firm Wiz, concluding that the deal raises no competition concerns in the European Economic Area.
But while Brussels sees no threat to market competition, civil society organisations warn that the deal risks reinforcing the dominance of US hyperscalers in strategic digital infrastructure.
“Credible alternatives” remain
Currently, in the cloud market, Google competes alongside Amazon Web Services (AWS) and Microsoft Azure. Although AWS and Azure hold larger global market shares, Google is one of the three major hyperscale providers operating in Europe.
Wiz, also a US-based company, is a cloud security company which develops software that enables organisations to detect and manage cybersecurity risks across multiple cloud environments, including AWS, Azure and Google Cloud. Its cross-cloud model has positioned it as an independent security provider for companies operating “multi-cloud” setups.
Following its market investigation, the Commission concluded that customers would retain “credible alternatives” in cloud infrastructure and security, and would remain able to switch providers even if Google integrates Wiz into its broader ecosystem.
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Executive Vice-President Teresa Ribera defended the decision as consistent with EU merger rules. “Following a thorough investigation, the Commission has cleared Google’s acquisition of Wiz”, she said, noting that Google “stands behind Amazon and Microsoft in terms of market shares in cloud infrastructure.” The review confirmed that “customers will continue to have credible alternatives and the ability to switch providers”, and therefore the transaction “does not raise competition concerns” in the EEA.
The transaction does not raise competition concerns in cloud services or cloud security in the European Economic Area – Executive Vice-President Teresa Ribera
Both Google and Wiz argued that the transaction would accelerate two growing trends in the AI era. To improve cloud security and the ability to operate across multiple clouds.
Civil society warns of “repeating past mistakes”
Outside the Berlaymont, the reaction was markedly different. In a joint statement, Rebalance Now, Open Markets Institute, Balanced Economy Project, SOMO and Article 19 described the decision as a missed opportunity to address what they call “past under-enforcement” in digital markets.
The groups argue that the takeover, Google’s largest ever, represents a strategic expansion into a critical layer of the digital stack. Cloud security underpins AI deployment, public-sector digitalisation and corporate risk management.
“Clearing this acquisition risks repeating the mistakes of past under-enforcement” – Civil Society Statmenet
Once integrated, the organisation argue, Google could favour its own infrastructure, limit interoperability with rivals or leverage cross-cloud security insights to strengthen its competitive position. Even if alternatives formally exist, switching costs and technical integration may deepen dependency over time.
“The presence of Azure and AWS in cloud will not prevent Google from entrenching its market position and raising barriers to entry for smaller cloud providers”, they said, warning that the Commission relied too narrowly on short-term competitive indicators.
A broader consolidation wave
The clearance comes at a time when the EU has repeatedly emphasised the need to reduce technological dependencies and strengthen resilience in areas such as cloud infrastructure and cybersecurity. Through proposals such as the EU Cloud and AI Act, Brussels has sought to build trust in digital services and reinforce European capacity in critical infrastructure.
At the same time, market consolidation among major technology firms has accelerated. According to SOMO, big companies completed at least 25 acquisitions in 2025, more than a 30 per cent increase compared to the previous year. Fifteen of those are companies in AI-related markets, including chips, data centres, cloud infrastructure and cybersecurity.
Beyond full acquisitions, firms increasingly rely on strategic investments and licensing arrangements. For example, Microsoft’s invedted $13 billion in OpenAI, Meta’s stake in Scale AI and Google’s investment in Anthropic. In this context, Google’s acquisition of Wiz becomes part of a wider market pattern.
