Dutch government blocks US IT giant’s acquisition of cloud provider

According to TechCrunch, the Dutch government has blocked American IT giant Kyndryl from acquiring Solvinity, a Dutch cloud provider that hosts the Netherlands’ online identity platform, citing a potential risk to the public interest.

The Dutch minister for the digital economy announced a complete prohibition on the acquisition, which would have allowed Kyndryl to purchase Solvinity for an undisclosed sum. Solvinity hosts DigiD, a government-managed platform used by Dutch residents to verify their identity for public services. The government's decision stems from concerns that the deal could lead to DigiD data falling under foreign control and potentially being accessed by U.S. authorities.

This move aligns with a broader trend in Europe to reduce reliance on U.S. technology giants, particularly amid unpredictable U.S. foreign policy. U.S. law permits government agencies to request data held by U.S. companies in overseas data centers, irrespective of local data protection laws. Kyndryl expressed extreme disappointment with the Dutch government's decision.

Source: TechCrunch