Solvinity, the Amsterdam-based IT company that hosts the DigiD infrastructure used by 16.6 million Dutch citizens, filed a preliminary injunction against the Dutch government’s ban on its acquisition by US firm Kyndryl. The Rotterdam district court will hear the case on July 6, 2026. The company says it needs clarity on the factual and legal basis of the ban, which State Secretary Willemijn Aerdts imposed on May 25 citing national security concerns over the US CLOUD Act.
Aerdts imposed the ban under the Undesirable Control in Telecommunications Act (WOZT), which covers hosting services and data centres alongside classic telecom infrastructure. She said she acted after receiving a classified advisory from the Bureau Toetsing Investeringen (BTI), the Dutch investment screening authority. “It is a decision I did not take lightly, because intervening in the market is a heavy instrument. But the fact that we could not eliminate the risks and could not guarantee the public interest made intervention necessary.”
The core concern: the US CLOUD Act, which allows US authorities to demand data from US-based companies regardless of where the data is stored. Kyndryl, spun off from IBM in 2021, employs 73,000 people and reports $15 billion in revenue. The government argues that US ownership of Solvinity would expose the DigiD infrastructure — used 645 million times in the past year — to potential US data requests or access blocks. Kyndryl has said Dutch data would not be at risk, but the classified BTI advisory makes independent assessment impossible.
US ambassador to the Netherlands Joe Popolo raised concerns on May 27, calling the ban a potential trade barrier. “What we are concerned about — and what I have called Washington about and will undoubtedly do again today — is: is this a trade barrier? What lies behind this exactly?” Popolo said. He said he believes the Netherlands decided “too quickly.” The Dutch government insists the decision was “country-neutral” and risk-based.
Solvinity is majority-owned by British private equity firm Vitruvian Partners. The company says it “takes the government’s concerns seriously” but needs clarity on the “factual and legal basis” before it can take “well-considered follow-up steps.” The competition authority (ACM) approved the deal. The ban marks the first time the Netherlands has blocked a US company acquisition.
The Rotterdam district court will hear Solvinity’s preliminary injunction on July 6. Three privacy foundations — Privacy First, Human Rights in Finance, and The Firewall — have been invited to submit their views. The government announced stricter procurement rules for DigiD on June 5, requiring that the technology remain in European hands for future contracts. Solvinity’s current hosting agreement runs until 2028.