Dutch cabinet extends DigiD contractor contract despite U.S. takeover concerns

The Dutch cabinet will extend its contract with IT firm Solvinity, which operates the infrastructure behind the national DigiD authentication system, despite strong opposition in the Tweede Kamer and ongoing concerns that a pending U.S. takeover could expose sensitive government data.

State Secretary Eric van der Burg of the Ministry of the Interior and Kingdom Relations informed parliament that the extension is necessary to ensure uninterrupted operation of DigiD, which is owned by government IT agency Logius.

Van der Burg said the decision was made on March 27, 2026, and allows Logius to extend its contract with Solvinity by two years. “The signing of this extension will take place in early May 2026,” he wrote to lawmakers.

He defended the move as essential for public service stability, stating: “Otherwise, the continuity and security of Logius’ services would be at risk.”

The extension comes as U.S.-based technology company Kyndryl is in advanced talks to acquire Solvinity. The proposed deal has raised concerns in parliament that, in certain circumstances, U.S. authorities could gain access to sensitive Dutch government data.

Lawmakers in the Tweede Kamer have previously urged the government to block the acquisition. Earlier this week, all parties except JA21 supported a motion by Barbara Kathmann of GroenLinks-PvdA calling on the government “not to renew the DigiD contract with Solvinity in 2028 if the takeover by an American company goes ahead.”

The Bureau for Investment Screening (BTI), operating under the Ministry of Economic Affairs, is still reviewing whether the planned acquisition poses national security risks. The agency has not said when its assessment will be completed.

Concerns were also raised earlier this month by Logius’ chief privacy officer in an interview with de Volkskrant. He warned that after an acquisition, the Americans could “shut down DigiD for extended periods and issue secret information requests.”