Netherlands blocks US takeover of vital digital supplier

(politico.eu)

235 points | by vrganj 3 hours ago

19 comments

  • mcv 2 hours ago
    Finally!

    The entire country has been clamouring for this for weeks, and the government has been completely silent about it. A couple of weeks ago, the entire parliament (with only a single party dissenting) voted for a motion to end the contract with Solvinity, but the government extended it anyway, leaving blocking the takeover as the only option, and there wasn't a lot of confidence that the government would do that.

    The whole reason for this is that Solvinity host DigiD, the Dutch e-ID system that handles authentication to all government and many other sensitive systems (healthcare). With the US law that the US government should be able to get access to any data held by a US company, regardless of where it's hosted, this system clearly should be kept out of American hands.

    Of course there's still plenty of sensitive data in the hands of Microsoft, Amazon and other US companies. No idea when they're going to do something about that.

    • jorvi 1 hour ago
      It is a bit more complex tham that.

      Logius is the company that actually owns and manages the DigiD stack, it's just that they hired Solvinity for their expertise. AFAIK Solvinity can't access the data.

      I can't find it right now, but on Tweakers there was a long comment by someone on the inside that explained Logius basically had almost no know-how of how the current stack works, and there's lots of bespoke stuff. Basically classic vendor lock-in. The government (rather, Logius) now really wants to transition away from Solvinity, but that will likely be a 5+ year process.

      I also feel like this is another thing that the "fast ring" of the EU should do together. Take Estonia's stack as a base, and then countries like Sweden, Denmark, Finland, The Netherlands adopt it and co- develop it. Make it extensible for the bespoke things the countries need, and every few years check which bespoke extensions can actually be generalized and modularized. Would lead to a much better product. A man can dream :)

      • Muromec 45 minutes ago
        Estonia's tech was cool maybe 20 years ago. From what I understand it's a bit too hard on fetishization of PKI and Ukraine goes too hard on apps. Netherlands actually gets it really well with DigId that is doing bare minimum needed to actually perform eidas stuff without getting into the woods with legally blessed asn1 schemas and oid [0].

        I'm not sure what bespoke stuff they invented to get their sweet vendor lock in eurobucks, but the whole thing is nothing more than an OAuth provider for 19 million people. I guess NFC integration in the app that reads physical ids is on a fancier side, but I suspect on that side it's vendor locked by card vendor and their SDK.

        [0] https://zakon.rada.gov.ua/laws/show/z1398-12#Text

      • frevib 37 minutes ago
        > AFAIK Solvinity can't access the data.

        Solvinity is the hoster. It can fully access the stack.

        • crote 10 minutes ago
          It's even more complicated: the datacenter and the servers are owned and operated by the government, and the DigiD app itself is owned and operated by government-owned Logius.

          From what I have been able to deduce, Solvinity is contracted for some kind of sysadmin services - so basically Kubernetes babysitting?

      • mcv 1 hour ago
        How can you be sure that Solvinity can't access the data if Logius doesn't know how the current stack works? 5+ years to migrate sounds really bad.
      • NoahZuniga 1 hour ago
        Logius is actually not a company but a part of the dutch (national) goverment.
        • shiandow 1 hour ago
          In that case we can indeed safely assume they have no technical knowledge.
        • Muromec 43 minutes ago
          It's a state owned enterprise as far as I remember. So technically they don't wear civil service uniforms in the office, but still get the usual government office hours.
          • RobotToaster 20 minutes ago
            The Dutch civil service wears a uniform?
    • tcp_handshaker 1 hour ago
      >> Finally!

      You are behind the curve. You read here first. Lets revisit this comment in 2 years...

      This will be overturned by both Dutch and European courts after the company appeals, and specially after Mark Rutte Daddy calls. The only purpose of this action is for the Dutch government to save face, and its for internal consumption. They already have the internal legal advice stating this, hidden away in some closet. But then they will say: You see, we wanted to do it but a court blocked us.

      >>Of course there's still plenty of sensitive data in the hands of Microsoft, Amazon and other US companies.

      The WHOLE Dutch diplomatic and broader civil service, including the Ministry of Foreign Affairs, runs extensively on Microsoft infrastructure for its daily operations, cloud services, and email. And they leak....

      "Microsoft Accused Of Sharing Dutch Officials’ Data with U.S. Government" - https://www.yahoo.com/news/politics/articles/microsoft-accus...

      This will also be the core legal argument by the appealing company. They will argue that the decision was politicized, insufficiently reasoned, or disproportionate because binding technical/legal safeguards would have solved the risks... And they will use as example, the diplomatic service extensive use of Microsoft :-)

      So is nothing more than another Polder hypocritical take, by the Dutch government.

      • Aaargh20318 26 minutes ago
        > They will argue that the decision was politicized,

        It’s not ‘politicized’, it’s the gateway to all Dutch government services and as such it is inherently political.

        > insufficiently reasoned, or disproportionate because binding technical/legal safeguards would have solved the risks...

        There are no legal safeguards against the CLOUD act. There can be no technical or legal safeguards as long as the physical hardware is owned by a US company.

      • Muromec 41 minutes ago
        >The WHOLE Dutch diplomatic and broader civil service, including the Ministry of Foreign Affairs, runs extensively on Microsoft infrastructure for its daily operations, cloud services, and email. And they leak....

        There is a broad digital strategy to migrate off from American infra. Will take 10 years, but this stuff has inertia once it starts moving.

      • mcv 1 hour ago
        > This will also be the core legal argument by the appealing company. They will argue that the decision was politicized, insufficiently reasoned, or disproportionate because binding technical/legal safeguards would have solved the risks... And they will use as example, the diplomatic service extensive use of Microsoft

        How would that argument support a sale to the US? It sounds like the perfect argument against it. Those technical/legal safeguards clearly didn't work for Microsoft either.

        • tcp_handshaker 1 hour ago
          You are using logic to argue for the best and most correct outcome, I am using logic, to state how and why, this will play the way it will...
      • j_maffe 1 hour ago
        > Mark Rutte Daddy calls

        Mark Rutte, the chief of NATO and ex-PM, that has nothing to do with civilian tech? Can we please leave unfounded conspiracy theories to Reddit?

        • tcp_handshaker 1 hour ago
          [1]- NATO Secretary General responsibilities:

          "...Above and beyond the role of chair, the Secretary General has the authority to propose items for discussion and use their good offices in case of disputes between member states....

          ...In order to facilitate this process, the Secretary General maintains direct contact with Heads of State and Government, and Foreign and Defence Ministers in NATO and partner countries...."

          [1] - https://www.nato.int/en/about-us/organization/nato-structure...

          And Mark Rutte has been shaping the domestic fiscal debate inside the Netherlands [2]: "...Mark Rutte said the Netherlands must significantly boost defence spending and pointed to Dutch spending on pensions, healthcare and social security, saying only a small fraction of those allocations would strengthen defence..."

          [2] - https://nltimes.nl/2024/12/03/nato-leader-rutte-netherlands-...

          And on conspiracy theories - Do you trust the Financieele Dagblad?

          https://nltimes.nl/2025/11/20/asml-offered-spy-us-breaking-e...

        • mschuster91 1 hour ago
          > unfounded conspiracy theories

          Their sentiment is that Trump intervenes by whining to Mark Rutte, who seems to be the only European Trump is actually willing to listen to, at the expense of course of giving up all his dignity in calling Trump, literally, Daddy [1].

          And I would not put it past Trump to do that... I mean, that's what he already did regarding Tiktok.

          With Trump nothing is impossible any more, especially if he or someone in his circle stands to make or lose money. And that's the greatest danger in the US turning into a full blown banana republic.

          [1] https://www.politico.com/news/2025/06/25/nato-chief-calls-tr...

          • WJW 15 minutes ago
            So what do you expect the outcome to be if Trump complains to Rutte, who will then do... what exactly? Ask the current PM to do him a favor because of "reasons"? An overwhelming majority of people in the Netherlands oppose selling this company to the US, an overwhelming majority of political parties voted to block the sale and now the secretary of state in charge of this particular department indeed blocked it.

            It seems to me that there is no way that Trump could overturn this decision via Rutte that Trump couldn't accomplish on his own by just threatening the Netherlands directly.

        • hvb2 1 hour ago
          Does that sound outlandish to you? It doesn't to me...

          It's probably something he would use as 'change' to resolve something unrelated with NATO. Then he can sell how well he's keeping NATO together

    • hvb2 2 hours ago
      > A couple of weeks ago, the entire parliament (with only a single party dissenting) voted for a motion to end the contract with Solvinity, but the government extended it anyway, leaving blocking the takeover as the only option,

      Given what we know now, this seems perfectly logical. It's just that we don't know what else is going on behind the scenes.

      I'm sure there was some negotiations on how to keep the data separate or something, with the threat of blocking it altogether as a final solution.

      But agreed, this is a good outcome

      • monegator 2 hours ago
        > I'm sure there was some negotiations

        which i'm sure the current administration would honour

        There should be grave consequences alone for the fact that the goverment acted against the parliament

        • hvb2 1 hour ago
          > which i'm sure the current administration would honour

          It would've been the same administration as the one doing the negotiations, so I would assume yes.

          > There should be grave consequences alone for the fact that the goverment acted against the parliament

          In general I think there's a pretty good understanding between the legislative branch and the executive branch. The Netherlands has always had coalitions. Also, every single government will talk to the other parties.

          I'm not sure what country you're referring to but the Netherlands has a properly functioning democracy. The only problem it has is splintering into too many small factions making coalitions super hard

          • mcv 1 hour ago
            There are certainly countries that have it worse, but Netherland has some weird political games being played sometimes.
        • Muromec 40 minutes ago
          There was that chip company that was almost nationalized by the Dutch government few months ago when their Chinese owners started making funny noises.
  • wildekek 5 minutes ago
    As a Dutch citizen, I don't understand why we can't self-host an open source identity solution for 20M users with 30K requests an hour. How hard can it be?
    • dncornholio 3 minutes ago
      30k requests and hour? A 5 euro VPS can handle this easily.
  • fusslo 2 hours ago
    Never heard of 'Kyndryl' before.

    https://en.wikipedia.org/wiki/Kyndryl

    > Officially formed in late 2021, Kyndryl was created from the spin-off of IBM's infrastructure services

    > Kyndryl operated in 63 countries in November 2021

  • kleiba2 1 hour ago
    If it's such a vital piece of Dutch infrastructure, why is it in private hands at all?
    • danslo 1 hour ago
      DigiD itself is government-owned, but its infrastructure is managed by Solvinity (a private company). Not really different from the US gov running half its stack on AWS.
      • kleiba2 1 hour ago
        Okay, maybe let's not take the US as a point of comparison.
        • danslo 1 hour ago
          Fine. Not really different from most governments relying on private suppliers to manage their infrastructure.
    • Cthulhu_ 44 minutes ago
      Because too few IT capable people are willing to work under the government's pay scales; in most cases going private / corporate earns more. So most Dutch IT projects end up with private companies, which also means that, in the case of DigID and the secure / official messaging platform, the hosting party can charge exorbitant rates. Did you know it costs 25 cents to send a message via the Berichtenbox? So when the government does its annual "it's time to fill in your taxes" message, they have to pay millions. Assuming they don't get a bulk deal, anyway.
      • mechazawa 18 minutes ago
        There are plenty of people who are willing to work for the government and the pay is pretty decent. But their stack is often Microsoft based and their IT is located in Apeldoorn.

        Who in their right mind would want to travel all the way to Apeldoorn.

        A good example of internal development in the government is the police. They have internal development teams.

      • Muromec 35 minutes ago
        For the record, Logius (the government owned enterprise dealing with DigID) vacancy for Java developer: https://www.werkenvoornederland.nl/vacatures/lead-java-devel... . 92k EUR per year for whatever they measure as 40 hours a week (I bet they close the shop at 4 pm).

        >Did you know it costs 25 cents to send a message via the Berichtenbox?

        In a country with paid toilets what do you expect lol

        • Vespasian 5 minutes ago
          That doesn't sound bad at all. At least for me as a German that would be a salary that you wouldn't get at every random company.

          Maybe the Netherlands are different (country can vary a lot with what is included in a salary) ?

      • AndyMcConachie 6 minutes ago
        I know people that work as contractors for the Dutch government. The government doesn't save money by hiring them through contractors. They cost more through contractors. But contracting allows private companies to act as gatekeepers and pocket some cash for essentially supplying full time employees. It's a form of corruption by well connected private contracting companies.
    • Nevermark 49 minutes ago
      Apologies in advance for wasting anyone's time with a light hearted tangent. But as I scrolled past your comment I read:

      > If it's such a vital piece of infrastructure, why is it in Dutch hands at all?

      It was the funniest thing I have misread in a while.

    • conceptme 53 minutes ago
      because privatisation
  • petcat 2 hours ago
    Good for them, but I doubt this will be the last we hear about this especially with the current US government. ASML was only permitted to acquire US company Cymer (the actually valuable EUV light source technology) back in 2013 under a strict technology sharing and export control agreement.

    The Netherlands blocking a US acquisition due to technology control concerns is sure to ruffle some feathers in Washington.

    • NietTim 2 hours ago
      This is not some sort of company making unique tech, it's a company handling some of the most the vital infrastructure for our government, you can imagine the privacy concerns. Completely different case
      • petcat 2 hours ago
        Sure, but the point is that it's tit-for-tat. This US administration is petty.
        • exceptione 4 minutes ago
          True. But the reaction also depends on how much money the leverage is worth and how much Solvinity has to offer here.
        • Epskampie 1 hour ago
          All the more reason to block vital stuff going to the US. They cannot be trusted anymore.
          • Paradigma11 3 minutes ago
            True, but the question is if it isn't smarter to wait for the midterms in November where it currently looks like it's going to be a disaster for Trump and the Republicans.
    • wongarsu 2 hours ago
      In 2013, the same deal would likely have gone through. US-Dutch relations looked very different in 2013 under Obama than they look now under second-term Trump. Any reciprocity today based on things Obama did back then falls flat because we all know Trump opposes nearly everything Obama ever did
      • gpvos 1 hour ago
        Absolutely, no one would have batted an eyelid.
  • thisislife2 1 hour ago
    The Dutch should be aware that if Netherland has some information-sharing agreements with Five Eyes or Fourteen Eyes, all this data will still be available to the US (and other allies) (hopefully, presumably, with your government acting as the gatekeeper).
    • WJW 7 minutes ago
      It's not only about the data, it's about the risk that the US would basically turn off things like tax collection and doctors' visits in the Netherlands as part of (say) a first strike on Greenland.

      Sure, the chance is low. But in the current climate people are nervous and it's best not to risk it. The current government has already embarked on a long-term strategy to bring more of critical software infrastructure back in-country, selling the core identity provider software abroad would go directly against current policy.

    • Deukhoofd 1 hour ago
      The issue was less privacy concerns, and more "hey lets not hand over one of the most critical pieces of infrastructure to a potentially hostile state". DigID is the user authentication platform for basically every government site in The Netherlands. A foreign government could use sanctions to pressure Dutch individuals to comply by limiting access to it.
    • dncornholio 6 minutes ago
      It's not about privacy, it's about control.
  • hunglee2 41 minutes ago
    Should be simple matter to escalate this up to the President, who will put the squeeze on the Dutch government, and then secure his 10% fee for rescuing the take over deal
  • applfanboysbgon 2 hours ago
    Good on the Dutch government for actually doing something.
    • spwa4 2 hours ago
      All governments are "doing something". It just isn't at all effective and mostly because they're unwilling to invest even marginal amounts.

      Like in this case. The technology here utterly depends on Google Play Services on Android or App Attest on Apple (or "secure enclave"), and that is in fact essentially the only functionality.

      This could have been solved instead switching to a standard (switching to OATH, RFC 4226 and RFC 6238), thus killing the dependency on Google/Apple while still allowing those devices to work smoothly, but also allowing a Linux implementation, allowing anyone . Plenty of European companies provide implementations for this, some with and some without the dependency on Google/Apple attestation.

      • applfanboysbgon 1 hour ago
        I'm not talking about some abstract sense of "did the government do anything at all today", I am saying "good on the government for doing something in this specific case instead of doing nothing and letting it be sold", which was a possible outcome, and in fact the default outcome of the vast, vast majority of acquisitions is that the government does nothing to intervene.

        Could they do something better, sure. I am still glad to see they did something at all.

      • Vinnl 1 hour ago
        I can sign in to DigID without using my phone, except sometimes with an SMS verification code. (Of course they want to, and should, phase that out. Hopefully that won't be replaced by app store dependence.)
      • microtonal 1 hour ago
        Uhm, no, DigiD works without Play Services:

        https://www.logius.nl/actueel/qr-code-scanner-digid-app-werk...

        (Also works fine on my GrapheneOS phone with only basic integrity, also worked on microG when I tested.)

  • stego-tech 50 minutes ago
    I keep seeing variations of “okay but this will be temporary” or “this is a one off” or “they’ll relent eventually, they have no choice” in response to the EU’s (and to a lesser extent, global) divorce from US tech stacks.

    You cannot unring this bell, however, nor can you put the genie back in the bottle, close Pandora’s Box, etc, pick your own metaphor. The US burned through the trust thermocline very suddenly these past few years, snapping the tension that had been brewing over several decades from US hegemony and the abusive diplomacy it created.

    Now that the US regime is openly hostile to everyone else and US firms have dropped the pretense of being anything less than a global surveillance state, there’s nothing to go back to. These sorts of rejections and blocks will continue to escalate until a new norm is agreed upon by cooler heads, which I don’t see happening in the current climate.

    Make no mistake, power everywhere wants more surveillance capabilities; the EU wants it as much as China or the USA. The difference is that with the leading empire in decline, everyone realizes that owning their own surveillance state is an advantage over outsourcing it to a potential enemy.

  • midasz 1 hour ago
    Great news. Would have been devastating to have such an integral part of our society at the whims of not just another nation, but an unstable and downright hostile one.
  • mkj 2 hours ago
    Solvinity is a pretty terrible company name.
    • cactusplant7374 2 hours ago
      Solvinity = Solvent Divinity
    • mortarion 1 hour ago
      We're terrible at company and brand naming here in Europe. Just look at the "Wero" payment solution (formerly/currently iDeal). Like, who the hell came up with that stupid name?

      The list of stupid European company names and product names are endless.

      • twjdeboer 1 hour ago
        I agree, the Dutch iDeal was probably the better name. However I'm not sure if this is an uniquely European problem. Wero's counterpart 'Zelle' doesn't seem to be that much better of a name.
      • Muromec 32 minutes ago
        It's called Wero, because it means we and euro in all of the official EU languages.
    • TacticalCoder 2 hours ago
      > Solvinity is a pretty terrible company name.

      I find it okay'ish. At least it's unique. Say, as much as I like Mario Zechner (who doesn't like HNers anymore for whatever reason), naming your product "Pi" is just terribly bad.

      Facebook was a good name (hate the company but the name was good). But "Meta" is just dumbfucktarded.

      Wait... I've got an idea: I'm going to make a product and name it "Alt". Or "Control".

      Really: there are a lot of totally unhelpful name that just confuses everybody, including search engines, humans, and LLMs but I don't think "Solvinity" is that bad.

      • agmater 1 hour ago
        I've always found Whatsapp a terrible name, but its so established now that 'apping' is understood. If you're big enough it seems that a bad name hardly hold you back.
        • amelius 1 hour ago
          Reminds me of the old joke:

          After Bill and Melinda Gates have their honeymoon, Melinda says, "Now I know why you call it Microsoft."

  • gyanchawdhary 14 minutes ago
    The subtitle “Across Europe, there have been increased concerns about the bloc’s reliance on American tech.” is false and really an economic chamber.

    The author has no basis for this claim, factually or otherwise .. maybe a small tiny group would love to see this happen, but EU is happy like rest of the world minus China to enjoy the products made by great American software companies.

    • Tepix 7 minutes ago
      Are you serious? You did notice that there was even a EU digital sovereignty summit recently?
  • dncornholio 8 minutes ago
    This is a direct result of Trump being in power. Before his regime, we (The Netherlands) trusted USA 1000%, this takeover would not even have been news.

    This stance has shifted completely. And you can thank one guy for it.

  • carlosjobim 57 minutes ago
    How come the Dutch people aren't offering more than the US investors to purchase this company, since this seems to be so close at heart?
    • raziel2p 12 minutes ago
      maybe how much money you are willing to spend isn't a perfect measure of how important something is?
      • carlosjobim 6 minutes ago
        It is just about the only measure. People who claim something is extremely important and then will not take any action or spend any money - they're dishonest people.

        Let's see if the Dutch are men of their words. I expect the government to offer to buy this company, or an offering being made for the Dutch investing public to get shares.

    • john_strinlai 24 minutes ago
      because its already a dutch company?
  • _HMCB_ 1 hour ago
    One word: good.
  • selectively 1 hour ago
    A ground invasion would be an appropriate response.
    • creaturemachine 1 hour ago
      By that we mean, send a whitehouse crony over to throw a temper tantrum on Dutch soil.
      • Muromec 31 minutes ago
        Something something, a free ticket to Den Haag
  • vrganj 3 hours ago
  • SirFatty 1 hour ago
    "US Takeover"
  • sjamaan 2 hours ago
    Best news of the year!