Netherlands Blocks US Takeover of DigiD Operator Solvinity Over Security Concerns
State Secretary Aerdts of Economic Affairs has blocked U.S. company Kyndryl’s acquisition of Solvinity, the Dutch operator of DigiD, citing the “need to protect the public interest.” This decision follows concerns raised in the Tweede Kamer regarding foreign ownership of critical Dutch digital infrastructure and potential risks to data security and sovereignty due to U.S. laws. The regulatory agency, Investment Screening Bureau (BTI), advised prohibition based on the Insufficient Controls of Telecommunications Act (WOZT), which focuses on risks to the public interest rather than the nationality of the acquiring company. The prohibition was enacted to prevent imminent completion of the transaction and safeguard sensitive Dutch government systems and citizen data.
John Q. Hosedrinker