The Dutch government has blocked American IT firm Kyndryl from acquiring Solvinity, a Dutch cloud service that hosts the Netherlands’ online identity platform. The move was justified due to fears of potential data control by foreign authorities.

Despite not providing an explicit reason, this decision echoes a broader trend in Europe where there's increasing scrutiny over US tech giants. With the Trump administration’s unpredictable stance on data privacy and security, European governments are looking to protect their digital sovereignty.

The deal would have allowed Kyndryl to gain access to Solvinity for an undisclosed sum, raising concerns that DigiD data could fall under U.S. control.

According to Dutch Minister Willemijn Aerdts, the acquisition was blocked due to a ‘risk to public interest’. The Dutch government’s decision is seen as part of efforts to reduce reliance on foreign tech firms and enhance local digital security measures.

Kyndryl expressed disappointment at the decision, stating they were 'extremely disappointed' in the outcome. This move underscores the growing tension between global tech giants and national data sovereignty concerns in Europe.