Dutch government blocks US company from acquisition, citing 'risk to public interest' | TechCrunch

The Dutch government blocked Kyndryl’s planned acquisition of Solvinity, a Dutch cloud provider hosting the Netherlands’ online identity platform. The government stated the deal posed a possible risk to the public interest and imposed a complete prohibition on the acquisition. Solvinity operates DigiD, which helps residents verify identity when accessing public services managed by the Dutch government. Concerns arose that the transaction could place DigiD data under foreign control and make it subject to demands by U.S. authorities. The decision aligns with broader European efforts to reduce reliance on U.S. technology firms amid uncertainty and retaliation. U.S. authorities can require U.S. companies to hand over data stored in overseas datacenters, even when local data protection laws differ. Kyndryl expressed disappointment with the outcome.

"The Dutch government has blocked American IT giant Kyndryl from acquiring Solvinity, a Dutch cloud provider that hosts the Netherlands' online identity platform. The government in The Hague said the deal poses a possible "risk to the public interest.""

"Dutch minister for the digital economy Willemijn Aerdts said in a machine-translated letter published Monday that the government has imposed a "complete prohibition" on the acquisition. The deal would have allowed Kyndryl to buy Solvinity for an undisclosed sum. Solvinity hosts a platform called DigiD, a service managed by the Dutch government that allows the country's residents to verify their identity when accessing public services."

"The deal triggered fears that the deal would mean that DigiD data falls under foreign control, and could be demanded by U.S. authorities. While the Dutch government did not provide an explicit reason for blocking the acquisition, the move comes as several European countries are moving to reduce their reliance on U.S. technology giants at a time where the Trump administration has been increasingly unpredictable and retaliatory."

"U.S. law allows government authorities, including law enforcement and intelligence agencies, to demand that U.S. companies turn over data held in overseas datacenters, regardless of that country's data protection laws. Politico first reported the news. Kyrdryl told the publication that the company was "extremely disappointed" by the decision."

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