Judge: Dutch government may extend DigiD-contract with Solvinity, despite concerns over U.S. takeover

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Judge: Dutch government may extend DigiD-contract with Solvinity, despite concerns over U.S. takeover

The Dutch government may extend its contract with IT service provider Solvinity, a judge ruled on Wednesday. Three citizens had brought summary proceedings in an attempt to block the cooperation, citing concerns about the possible takeover of Solvinity by the American technology company Kyndryl.

What is Solvinity?

Solvinity is responsible for managing critical government services, including the platform that underpins DigiD and MijnOverheid. The claimants fear that, if the company were taken over by an American party, the personal data of Dutch citizens could become accessible to U.S. authorities. They also warn of the risk that the United States could effectively gain control of a so‑called “kill switch,” enabling it to shut down essential digital government services.

What is the Dutch government’s position?

According to the state’s lawyer, these concerns are premature. The planned takeover is currently being examined by the Dutch Investment Screening Bureau (BTI). On the basis of that investigation, the Minister for Economic Affairs and Climate Policy can intervene if the transaction is found to pose a risk to national security or another public interest. The government is also still in talks with Solvinity about additional safeguards to protect citizens’ privacy and security.

What did the judge decide?

Wednesday, 6 May, was the deadline by which clarity had to be provided on the contract extension. The judge therefore issued an immediate ruling allowing the extension to go ahead for the time being. A more detailed explanation of the judgment will follow within two weeks.

Concerns about the possible U.S. takeover of the IT company Solvinity have been present in Dutch politics and society for some time. Read our earlier article on this issue:

How the Dutch parliament is trying to stop an American takeover – and why it has failed so far
For months, the Dutch House of Representatives has been trying to prevent the company behind DigiD from ending up in American hands, but so far without success. Solvinity, the IT company that provides the infrastructure on which DigiD operates, may be taken over by the US tech firm Kyndryl. The

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