Dutch government blocks Kyndryl acquisition citing public risk
Original: Dutch government blocks US company from acquisition, citing ‘risk to public interest’
Why This Matters
Signals growing European resistance to US tech acquisitions over digital sovereignty concerns
The Netherlands blocked US IT giant Kyndryl from acquiring Dutch cloud provider Solvinity, which hosts the country's DigiD online identity platform. The government cited potential risks to public interest from foreign control.
Dutch minister Willemijn Aerdts announced a complete prohibition on Kyndryl's planned acquisition of Solvinity for an undisclosed sum. Solvinity hosts DigiD, a government-managed platform allowing Dutch residents to verify their identity when accessing public services. The decision reflects concerns that DigiD data could fall under foreign control and be subject to US authorities' demands. Under US law, government agencies can require American companies to turn over data from overseas centers regardless of local data protection laws. The move aligns with European efforts to reduce reliance on US tech giants amid concerns about the Trump administration's unpredictability. Kyndryl expressed extreme disappointment with the decision.