Dutch authorities announced Tuesday they will prevent the acquisition of a critical cloud computing firm by an American technology company, citing national security risks.
The Netherlands will block US-based software firm Kyndryl from purchasing Solvinity, a Dutch cloud services provider that operates the country’s essential DigiD digital identity platform. Citizens rely on this system to interact with government agencies and access personal medical, insurance, and tax records.
Junior Economic Affairs Minister Willemijn Aerdts informed parliament in a written statement that government officials determined the proposed acquisition could threaten public interests. The decision follows implementation of legislation aimed at limiting foreign oversight of telecommunications infrastructure.
Parliamentary representatives had expressed concerns that allowing Kyndryl to complete the purchase might enable US authorities to gain access to all data managed by Solvinity’s systems.
Officials from the Economic Affairs ministry indicated they are currently coordinating with Solvinity and its existing ownership to determine how to proceed following this ruling.
