Solvinity, company behind DigiD, appeals against government ban on U.S. takeover

Solvinity, the cloud company behind DigiD, is appealing against the Dutch government’s decision to block the company’s acquisition by the American company Kyndryl, a spokesperson for State Secretary Willemijn Aerdts of Digital Economy and Sovereignty confirmed to NOS.

Aerdts banned the takeover last month to “protect the public interest.” Solvinity told NRC that it takes the government’s concerns seriously, but needs clarity regarding the factual and legal basis of the decision, so that it can take its next steps well-considered.

The appeal is currently before the court, and the Ministry of Economic Affairs, which covers Aerdts’ department, cannot comment further on the matter, the State Secretary’s spokesperson told NOS.

The government’s decision to block the takeover follows major concerns in parliament about the DigiD platform falling into American hands. Tech experts warned that American law allows the U.S. government to access American tech companies’ data and, in certain cases, block access to these companies.

DigiD is very widely used in the Netherlands and holds the data of almost every Dutch resident.

Aerdts based her decision to stop the takeover on the advice of the supervisory body Bureau Toetsing Investeringen (BTI), which investigates potential risks to national security associated with investments, mergers, and acquisitions.

“It is a decision I did not take lightly, because intervening in the market is a drastic measure,” Aerdts said at the time. “But the fact that we could not eliminate the risks and could not guarantee the public interest makes intervention necessary.”