Netherlands blocked US company from buying provider of Dutch digital identity

9 hours ago

The Dutch Investment Screening Bureau prohibited IBM spinoff Kyndryl from acquiring Dutch cloud provider Solvinity for €100 million, marking the first US acquisition blocked by the bureau.
The decision, based on public interest risks, concerns the U.S. CLOUD Act, which could allow U.S. authorities to access data hosted by U.S. companies, including sensitive Dutch digital identity system DigiD.
Solvinity hosts critical Dutch public digital infrastructure, including DigiD, MijnOverheid, and Digipoort, making foreign ownership a national security risk.
The move aligns with broader European efforts toward digital sovereignty, reducing dependence on U.S. tech providers, as seen in upcoming EU Tech Sovereignty Package proposals.
The Netherlands previously seized control of a Chinese-owned semiconductor firm, showing willingness to intervene in foreign ownership of critical infrastructure regardless of origin.
The block is a commercial setback for Kyndryl, which aimed to expand its European sovereign cloud business, while the Dutch government prioritizes security over commercial benefits.
The decision may preview stricter EU-wide restrictions on U.S. cloud platforms for government data, influencing future transactions involving American tech companies in Europe.

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