The Dutch government has shot down plans to sell homegrown Cloud services provider Solvinity to US software company Kyndryl.
The sale was blocked due to security and privacy concerns under a Dutch law that curbs foreign control over telecom services, media reports said.
The provider hosts the Netherlands-based DigiID system which hosts public services and personal medical, insurance and tax details.
In a letter to Dutch parliament, Junior Economic Affairs Minister Willemijn Aerdts wrote that the Dutch Investment Screening Bureau had ruled that the takeover of Solvinity will pose a possible risk.
Parliament reportedly feared that the takeover would give the US government full access to Solvinity’s data, including those of politicians and patients.
US REACTS TO DUTCH DECISION
The US Embassy in The Hague describes the decision as “disappointing” in a brief statement released on social media.
“Strong partnerships require clear, fair and reciprocal rules that attract investment,” the statement read.
It added that they remain “committed” to working with Dutch partners.
A spokesman for the US company reportedly told media that the decision was a political one and that they were very disappointed by it.
Kyndryl is based in New York and subject to the US Cloud Act, which compels American-based tech companies to surrender data to law enforcement regardless of where the data is stored.
(In 2024, Australia’s Cloud deal with the US took effect which gives police and other agencies access to data in each other’s country.)
In a three-paragraph statement, Solvinity says it “remains fully committed” to providing safe and reliable IT services to the Dutch government.
“Solvinity continues to engage in dialogue with the relevant authorities regarding the considerations made in the context of national security, digital autonomy, and the protection of Dutch critical infrastructure,” the statement reads.
The deal was first announced by Kyndryl in November 2025 for a reported A$159 million; the US firm is present in more than 60 countries (including Australia).
SPAIN SUSPENDS PREDICTION MARKET OPERATORS
The move comes after Spain temporarily blocked American ‘prediction’ market firms Polymarket and Kalshi.
Madrid says its gambling watchdog is investigating the companies for operating in Spain without a gambling licence.
(Polymarket was banned in Australia last year: click here for details).
Prediction market users buy and sell stakes on the outcome of future events, with prices reflecting the probability of different outcomes.
Spain and other European nations reportedly consider prediction markets a form of gambling.
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