- The Dutch State Secretary for Economic Affairs and Climate prohibited the acquisition of Solvinity by Kyndryl under the Telecommunications Act (WOZT), citing risks to the public interest, though the specific legal grounds remain undisclosed.
- The ban is based on the WOZT, which may apply if the acquirer (or its influential state) has intentions to misuse telecom services, has a poor track record, or fails to cooperate with investigations—potential factors here include U.S. surveillance laws and Kyndryl's financial instability.
- Key concerns include threats to public order, security, and vital state interests, such as disruption of DigiD and communication surveillance, with implications for future American acquisitions of critical Dutch hosting firms.
- The decision could have broad consequences, potentially blocking all U.S. takeovers of companies serving Dutch society/government, or it may be specific to Kyndryl's issues, pending clarity from a possible legal challenge.
- Experts suggest the ban might be legally shaky if based on broad public interest criteria, and there are calls for transparency to guide future assessments and ownership structures like a state-controlled cloud.