Solvinity, the Dutch cloud company behind the national digital identity system DigiD, is appealing the government’s decision to block its acquisition by US firm Kyndryl. The Dutch State Secretary for Digital Economy and Sovereignty prohibited the takeover last month, citing concerns for the public interest and national security. The Bureau Toetsing Investeringen (BTI), an investment review agency, advised the block due to potential risks associated with sensitive data falling under US jurisdiction. Concerns center on the possibility of the US government potentially blocking access to DigiD or requesting data. Solvinity states it takes the government’s concerns seriously but seeks clarification on the legal basis for the decision. Kyndryl has expressed disappointment with the ruling, while a majority in the Dutch parliament opposed the acquisition. The case is now with the court, and further comment from the Ministry of Economic Affairs is limited.