The Dutch government blocked Kyndryl’s proposed acquisition of IT services provider Solvinity. The Investment Screening Bureau (BTI) recommended the block to protect the public interest and national security. Officials reviewed the deal under legislation governing telecommunications and critical infrastructure.
Solvinity manages the infrastructure for DigiD, the digital identity system used by millions of Dutch citizens. This platform secures access to government services, tax filings, and healthcare records.
Lawmakers and security experts warned the acquisition could subject sensitive Dutch data to the U.S. CLOUD Act. They expressed concern that U.S. authorities might gain jurisdiction over citizen records. Officials maintained the decision was risk-based and country-neutral.