The Netherlands Authority for Consumers and Markets (ACM) has green-lit the acquisition of IT service provider Solvinity—the firm responsible for the technical operation of DigiD—by the American corporation Kyndryl. The takeover had previously sparked concerns regarding the nation’s reliance on US-based firms, with experts warning of significant risks to digital sovereignty. Politicians have also voiced fears over the security of Dutch citizens’ data, leading a majority in the House of Representatives to call for the cabinet to block the deal.
Competition vs. Autonomy
The ACM clarified that its statutory merger review was strictly focused on competition risks, which it found to be non-existent. While acknowledging that public sector clients are concerned about the Netherlands’ digital autonomy, the watchdog concluded that these issues do not stem from a reduction in market competition. It is important to note that while Solvinity ensures DigiD runs smoothly, the service remains the property of Logius, a government entity.
National Security Scrutiny
The primary concern lies in the potential for unwanted interference, as the US government can legally intervene in American companies even when they operate through Dutch branches. Consequently, the Bureau for Economic Security (BTI) is conducting a separate investigation to determine whether the acquisition poses a threat to national security. The ACM has shared its findings with the BTI to assist in this ongoing assessment.
@anp | NEWS BRAINPORT
