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Dutch Government Blocks Sale of DigiD Owner to US Tech Giant - DutchNews.nl
On Tuesday, the Dutch government blocked Kyndryl's €100 million takeover of Solvinity, citing public interest concerns after advice from the Investment Screening Bureau.
Solvinity operates the hosting platform for DigiD, which millions of Dutch citizens use to access tax records, pension information and health insurance data; British private equity firm Vitruvian Partners agreed to sell the company to Kyndryl in a deal announced last November.
The US Cloud Act permits American authorities to compel US-owned companies to hand over data stored on European servers, raising concerns critics warned could expose sensitive Dutch citizen information to legal demands.
Kyndryl said it was "extremely disappointed" with the decision, claiming it was politicized, while Solvinity indicated it remained in discussions with authorities over "national security, digital sovereignty and the protection of critical Dutch infrastructure."
This marks the first time since 2020 that the Dutch Investment Screening Bureau has blocked a US acquisition, reflecting broader European efforts to retain domestic control over critical cloud and digital infrastructure.
The cabinet's decision to block the American takeover of Solvinity, the cloud company behind DigiD, falls into the category of: better late than never, writes Saskia van Westhreenen in this commentary.
2 days ago·Amersfoort, Netherlands (Kingdom of the)