Dutch government extends DigiD contract with US takeover target

The Dutch government has extended its contract with cloud storage company Solvinity until 2028, despite fears about the company’s pending takeover by a US company and the implications for privacy and security.
The deal was extended on Wednesday, despite the objections of MPs and experts, and attempts by campaigners to force a rethink in court, broadcaster NOS reported.
The government’s DigiD personal identity system, the justice ministry and a host of other official organisations use Solvinity services.
If the sale is finalised and Solvinity is sold to Kyndryl, it will fall under US law, allowing the government there to access all the information it holds. The US authorities would also, experts say, be able to threaten to close down the DigiD system to put pressure on the Dutch.
Judges at an emergency hearing on Wednesday threw out the efforts of campaigners to halt the sale, and will publish their reasoning in two weeks. The campaigners wanted a stop to give parliament more time to come up with a potential Dutch buyer.
GroenLinks-PvdA MP Barbara Kathmann has said a Dutch buyer is waiting in the wings to take over the management of DigiD services from Solvinity.
Junior minister Eric van der Burg said in an earlier briefing to MPs that extending the contract was “unavoidable” to ensure the continuity of the system.
The sale is still not a foregone conclusion. A government committee which monitors potentially damaging sales still has to report back on whether the takeover would form a “threat to the public”.
If this is found to be the case, the economic affairs minister can ban the sale on those grounds.
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