Economic Affairs min. announces tighter rules for foreign investment in tech companies
The Minister of Economic Affairs, Dirk Beljaarts, is sharpening rules when it comes to takeovers, mergers, and investments in Dutch high-value tech companies due to information he has received from secret services. More sectors will now have to complete a safety test for any deals the government feels could threaten national security, De Telegraaf reported. This will make it more difficult for around 1,700 Dutch companies to fall into foreign hands.
Companies that try to avoid doing this test could be fined up to 10 percent of the company's turnover. Public and private sources are going to supervise the tests to ensure that all the companies that it applies to are completing it.
Beljaarts told De Telegraaf that it is happening increasingly often that other countries are trying to take the Netherlands’ higher technological knowledge to expand their geopolitical and military power. He believes that other countries are searching for the newest technologies and trying to gather knowledge and information from Dutch companies in order to do so.
“We cannot afford to be naive when it comes to other countries' intentions with our companies,” said the PVV minister. He announced a package of measures regarding this on Thursday.
It had already been determined that companies that trade in chips, photonics, quantum, and military goods will be hindered when doing business on an international level.
They need to do a comprehensive test before doing so, and this has now also been extended to companies working in biotechnology, artificial intelligence (AI), advanced materials, nanotechnology, sensor and navigation technology, and medical isotopes.
Beljaarts added that the reason that is happening now is an increase in geopolitical developments and threats. “Every month, I see the state secret documents on my desk. I cannot elaborate on that now, but it is a reason to take this step. We cannot sit back. The Netherlands has very high-quality technical knowledge and techniques, and we have reason to assume that this could end up in the wrong hands, which is why we are trying to prevent that.”
The minister also did not rule out that more sectors may be added to the list of sectors that have to complete the safety test in the near future. He said that is dependent on the threat level.
