Netherlands blocks US bid for DigiD provider Solvinity

The Dutch government has formally prohibited the acquisition of a critical national digital identity provider by a U.S. technology company, citing risks to the public interest. State Secretary for Digital Economy Willemijn Aerdts blocked the proposed 100 million euro purchase of Solvinity Group by New York-based Kyndryl, acting on the advice of the national Investment Screening Bureau (BTI).

The decision, finalized on May 25 and detailed in a letter to parliament, marks the first outright prohibition issued by the BTI since its establishment. Officials said they acted after receiving serious indications the transaction was imminent. The deal, announced in November 2025, had already received clearance from competition authorities earlier this year.

Solvinity operates the digital infrastructure for DigiD, the universal identity system used by approximately 17 million Dutch citizens to access government services, including tax filing, healthcare records, and benefit applications. The company also manages the central government portal MijnOverheid and the business gateway Digipoort.

The primary concern cited was the potential application of U.S. laws, specifically the CLOUD Act,...