The Dutch government has decided to block the acquisition of Solvinity, a Dutch IT supplier, by the US-based company Kyndryl. Solvinity operates a platform crucial for the Netherlands' DigiD app, which facilitates online authentication for citizens interacting with public authorities and services. The acquisition, announced in November, raised concerns about foreign control over a vital digital identification tool.
An advisory body recommended blocking the deal, citing potential risks to the public interest. The government accepted this recommendation, as detailed in a letter to parliament by State Secretary for Digital Economy Willemijn Aerdts. This action follows established investment screening procedures designed to protect national interests.
The decision comes shortly before the European Commission is expected to present proposals aimed at enhancing Europe's technological independence. Kyndryl expressed disappointment, stating that the process had been politicized and overshadowed the potential benefits of the transaction.
