US business services provider Kyndryl attempted to acquire Dutch cloud company Solvinity. But The Hague officially blocked the acquisition, citing potential security risks to the country’s public interest. Deputy Minister of Digital Economy Willemijn Aerdts recently confirmed the acquisition ban.
Our decision shows a disruptive initiative designed to further promote European dominance in the digital market.
When it comes to technology, the US and Europe are rapidly moving apart. EU authorities are working to build their own digital sovereignty, while member states are reportedly actively pushing out foreign buyers for local service providers.
DigiD allows users to confirm their identity when interacting with public bodies and essential services, from booking medical appointments to completing housing-related transactions. Following an audit by the Investment Control Office (BTI), Dutch officials concluded that allowing the acquisition to proceed could weaken the country’s control over a significant part of the domestic cloud ecosystem.
The BTI has taken over the oversight of acquisitions and other major activities within the Dutch digital infrastructure. As the acquisition was set to close soon, the office blocked the acquisition on May 25. Dutch officials stressed that the review process is country-neutral and based on risk assessments, meaning there is no malice specifically directed against American companies.
The Hague stressed that foreign technology companies remain welcome in the Netherlands. At the same time, the government said it must maintain an independent framework for reviewing investments that could affect national security or the broader public interest.
Although the press releases will range from very select to rare, I said I'd pass...because sometimes the editors hide.
