Blocking US takeover of Dutch national ID system “poorly thought out,” ambassador believes
US Ambassador to the Netherlands Joseph Popolo has said the Dutch government didn’t have enough time to conduct a full evaluation of the American tech giant’s plans to take over the company that hosts the national ID system.
The Netherlands blocked US company Kyndryl from acquiring Solvinity, which hosts the national ID system DigiD, stating that the acquisition “may pose a risk to the public interest.”
The DigiD saga focused on concerns that American ownership would give the US authorities access to data on nearly 16 million Dutch citizens. US laws compel American companies to hand over data stored globally upon request by US law enforcement.
There were also fears that the US could disable services in the Netherlands via DigiD, the app that allows citizens to authenticate themselves when using government services.
Ambassador Popolo, speaking during a panel discussion at an international security conference in the Hague, acknowledged “legitimate security concerns” regarding the takeover of Solvinity, but insisted that the decision to block it was “poorly thought out.”
He said he believed the Dutch government didn’t have time for a full evaluation of the situation, according to a Tweakers report, which Cybernews machine translated.
The ambassador is now holding consultations with the US government to decide whether the ban constitutes a trade barrier.
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The Donald Trump administration has previously used the threat of tariffs to push back against what it calls “illegal trade barriers,” including digital regulations, making European countries frequent targets.
Kyndryl said it was “extremely disappointed” with the Dutch government decision, stating that the process was politicized and overshadowed the benefits the transaction could have delivered to Dutch citizens.
The US giant’s plans to acquire Solvinity, which is currently owned by the British investment firm Vitruvian Partners, sparked uproar in Dutch society. Citizens sued the country’s government to stop DigiD’s takeover by the American giant.
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