Dutch government blocks US company from acquiring Solvinity

The Dutch government has blocked the American IT giant Kyndryl from acquiring the country's cloud service provider Solvinity. The Hague administration assessed that the deal could "pose a risk to public interests." This was reported by Techcrunch.com reporting .

In an official letter published by Minister of Digital Economy Willemijn Aerdts, it is stated that the government has imposed a "full ban" on this acquisition. Solvinity provides services to the DigiD platform, which Dutch citizens use to verify their identity when accessing government services.

This deal raised concerns that DigiD data could fall under foreign control and be demanded by US authorities. US law grants law enforcement and intelligence agencies the right to demand that American companies provide data stored in foreign data centers.

The government's decision comes at a time when European countries are seeking to reduce their dependence on US tech giants. Kyndryl representatives stated they were "extremely disappointed" by the decision. Financial details of the deal have not yet been disclosed.