Dutch government blocks US company from acquisition, citing ‘risk to public interest’
Source: TechCrunch
Image Credit: Bryce Durbin / TechCrunch
The Dutch government has blocked American IT giant Kyndryl from acquiring Solvinity, a Dutch cloud provider that hosts the Netherlands’ online identity platform. The government in The Hague said the deal poses a possible “risk to the public interest.”
Block Announcement
Dutch minister for the digital economy Willemijn Aerdts said in a machine‑translated letter published Monday that the government has imposed a “complete prohibition” on the acquisition. The deal would have allowed Kyndryl to buy Solvinity for an undisclosed sum. Solvinity hosts DigiD, a service managed by the Dutch government that enables residents to verify their identity when accessing public services.
Government Concerns
The primary fear is that DigiD data could fall under foreign control and be subject to requests from U.S. authorities. U.S. law permits government agencies—including law enforcement and intelligence—to demand that U.S. companies hand over data stored in overseas data centers, regardless of the host country’s data‑protection regulations. See the related discussion on U.S. legal authority over overseas data.
Broader Context
While the Dutch government did not provide an explicit reason for the block, the decision aligns with a broader European trend of reducing reliance on U.S. technology giants. This shift is occurring amid concerns about the Trump administration’s increasingly unpredictable and retaliatory stance toward foreign entities. For more on this trend, see the article on Europe’s move away from U.S. tech: Amid Trump attacks and weaponized sanctions, Europeans look to rely less on US tech.
Kyndryl’s Reaction
Politico was the first outlet to report the news. Kyndryl told the publication that the company was “extremely disappointed” by the decision.