Netherlands blocks US company from buying the cloud provider that runs Dutch digital identity

Archived version

US enterprise services provider Kyndryl tried to acquire Dutch cloud specialist Solvinity, but The Hague has officially stopped the acquisition. Citing a potential security risk to the country’s public interest, State Secretary for Digital Economy Willemijn Aerdts recently confirmed the takeover ban. The decision anticipates a potentially disruptive initiative designed to further promote European sovereignty in the digital market.

As far as technology is concerned, US and Europe are growing apart at an accelerated rate. EU authorities are working to build their own digital sovereignty, while member states are now actively pushing foreign buyers away when it comes to local service providers.

Kyndryl first announced the acquisition in November 2025, saying Solvinity would expand its portfolio of mission-critical enterprise and cloud services. Solvinity operates secure managed cloud platforms and supports key Dutch digital systems, including DigiD, the authentication platform widely used by Dutch citizens.

DigiD allows users to confirm their identity when interacting with public institutions and essential services, from booking medical appointments to completing housing-related transactions. Following a review by the Investment Screening Bureau (BTI), Dutch officials concluded that allowing the acquisition to proceed could weaken the country’s control over an important part of its domestic cloud ecosystem.

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