The Netherlands blocks US takeover of DigiD

The Dutch government is blocking the acquisition of Solvinity by the American IT company Kyndryl. Solvinity is a Dutch cloud provider that plays a key role in the infrastructure behind DigiD, the digital identification system used by Dutch citizens to log in to government services.

According to TechCrunch, State Secretary Willemijn Aerdts has imposed a full ban on the acquisition. The decision follows advice from the Investment Review Office (Bureau Toetsing Investeringen), which concluded that the deal could pose a risk to the public interest.

The concerns revolve primarily around digital sovereignty and control over sensitive infrastructure. DigiD is used to access, among other things, tax matters, healthcare information, pension information, and other public services. If Solvinity were to come under American control, fears arose that data or infrastructure would indirectly fall under the influence of American legislation.

TechCrunch points to American regulations that allow authorities to request data from American companies, even when that data is located in foreign data centers. According to other reports, Kyndryl says it is disappointed and maintains that Dutch data would remain secure, but the government deemed the risk too great. This is important because digital infrastructure is increasingly being treated as a strategic asset. Cloud providers, identity systems, and authentication services are no longer ordinary IT suppliers, but components of national security and public service delivery.

For AI and technology policy, this fits into a broader European trend. Governments are taking a more critical look at dependency on American tech companies, especially regarding sensitive data, cloud infrastructure, and digital identity. The blocking of this acquisition shows that “digital sovereignty” is not just a political buzzword, but can also have real consequences for deals in the tech sector.