The Dutch government will investigate the consequences of the American IT company Kyndryl’s takeover of the Dutch cloud service provider Solvinity. The company plays an essential role in the national identity system DigiD.
Solvinity believes that the collaboration with Kyndryl will offer more opportunities to continue innovating in IT management, security, and automation. “We are aware of the questions that are circulating in the market,” said CEO Daniëlle Schuur earlier this month.
She emphasizes that there will be no impact on customer service. The company is in talks with governments and other customers to provide further clarification on the proposed acquisition. Solvinity has developed cloud solutions that help organizations comply with strict data storage regulations. Sensitive data often has to remain in its own country or region and cannot simply be stored with large American cloud companies.
Concerns about strategic dependence
Outgoing Minister of the Interior Frank Rijkaart said on Friday that “such an acquisition could be cause for concern.” The cabinet wants to become less dependent on American tech companies. There is concern that these companies could put pressure on the Netherlands if, for example, they process Dutch data. “We need to take a close look at the implications,” said Rijkaart. Several ministries are busy assessing the situation.
The minister does not want to block the takeover just yet. “It’s too early for that. We first need to see what this is really about,” he explained. After the cabinet meeting, State Secretary Eddie van Marum of Digitalization emphasized that DigiD “is Dutch and will remain Dutch.” The state attorney and the ministries of Economic Affairs and the Interior are thoroughly investigating the matter.