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US Firm’s Takeover Bid for Dutch Cloud Company Solvinity Raises Security Concerns in Parliament

Quneitra: Dutch lawmakers raised concerns on Friday over US tech company Kyndryl's plans to acquire Solvinity, a cloud provider that supports the Netherlands' DigiD digital identity system and other sensitive government services.

According to Anadolu Agency, Solvinity, originally a Dutch firm but now majority-owned by a British company, provides secure hosting for DigiD, MijnOverheid, and supports the Central Judicial Collection Agency. The potential takeover by Kyndryl, a major IT services company spun off from IBM, has raised alarms about the implications for data security and the reliance of Dutch government infrastructure on US tech firms.

GreenLeft-Labour (GroenLinks-PvdA) lawmaker Barbara Kathmann, who initiated parliamentary inquiries, highlighted that the acquisition is occurring at a time when digital services are increasingly viewed as geopolitical assets. She expressed concerns about the Netherlands potentially losing control over sensitive data managed on foreign servers, particularly with the US administration's influence.

Kathmann emphasized the threat of the Dutch government being vulnerable to foreign political pressures and urged the government to take decisive actions to prevent the sale. SGP party leader Chris Stoffer also voiced apprehensions, questioning the security of sensitive Dutch data if Solvinity falls under US jurisdiction.

Solvinity had earlier cautioned about the risks of digital dependence. A position paper published in May by the company and other Dutch firms stressed that access to government cloud services could be exploited for geopolitical leverage and underscored the need to enhance digital sovereignty.

State Secretary for Digitalization Van Marum acknowledged the government's awareness of Solvinity's search for a buyer but did not anticipate an American company as the lead contender. She mentioned that the Interior and Economic Affairs ministries are assessing the potential operational, legal, and contractual impacts of the acquisition.

The government has yet to determine if the acquisition can be legally obstructed under Dutch law. The parliamentary questions posed by GroenLinks-PvdA and the SGP are pending a response from the government.