Dutch regulator approves DigiD takeover by U.S. firm despite geopolitical concerns

The Dutch Authority for Consumers and Markets (ACM) has approved the acquisition of Solvinity, the company managing DigiD, by U.S. technology firm Kyndryl, concluding that the deal does not pose competition problems.

The approval follows concerns from Solvinity clients and public-sector users about the potential impact on the Netherlands’ digital independence. “We have examined whether concerns about digital autonomy are linked to a reduction in competition. That is not the case,” the ACM said.

The ACM shared the results of its investigation with the Bureau for Investment Assessment (BTI), which evaluates foreign acquisitions for broader risks, including national security. The BTI has not yet completed its review.

Experts and members of the Tweede Kamer have warned that increasing dependence on American technology companies could threaten Dutch digital sovereignty. During the ACM investigation, similar concerns emerged.

“Public-sector customers fear that the U.S. government could enforce access to digital data through legislation,” the ACM noted, adding that critical government IT services could be put under pressure.