The Netherlands Authority for Consumers and Markets (ACM) has approved the acquisition of IT service provider Solvinity by Kyndryl, a US-based company. The investigation conducted by ACM found no competition-related problems arising from the acquisition, despite concerns raised about digital autonomy by Solvinity's public sector customers.

ACM's assessment focused on whether the concerns regarding digital autonomy were linked to a reduction in competition. The authority concluded that the acquisition would not negatively impact competition, as buyers would still have ample choices among other Dutch and European IT service providers.

Concerns about digital autonomy were primarily voiced by lawmakers and media, particularly regarding the management of critical IT services, including the national identity management system DigiD. Public sector buyers expressed fears that Kyndryl's ownership could lead to potential interference in IT services and access to sensitive data by the US government.

Despite these concerns, ACM determined that sufficient competition would remain in the market post-acquisition. Buyers can mitigate their dependence on any single provider by diversifying contracts and including exit strategies.

ACM also highlighted the importance of enhancing the Dutch government's digital autonomy through its Digitalization Strategy, which aims to reduce reliance on external parties for vital IT infrastructure management.

Throughout the investigation, ACM collaborated closely with the Taskforce on the continuity of IT services and the Dutch investment screening authority (BTI), sharing findings to ensure national security considerations were addressed.