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Netherlands blocks US takeover of vital digital supplier

375 pointsby vrganjtoday at 11:46 AM132 commentsview on HN

Comments

mcvtoday at 12:37 PM

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.

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madbo1today at 6:12 PM

This is exactly why privacy by architecture matters more than privacy by policy. The Netherlands trusted a policy ("Solvinity can't access the data") but the architecture allowed it anyway. The only real solution is cryptographic sovereignty systems where even the vendor mathematically cannot access user data, regardless of what US law says. Not we promise we won't look but we literally cannot look. Building something small in this direction a mesh network where identity is a BIP-39 seed phrase and messages are E2E encrypted at the protocol level,not the application level. The goal is that even I as the developer cannot read user messages. It's still early, but this problem you're describing is exactly why it needs to exist.

bilekastoday at 4:28 PM

> "The politicization of this process has overshadowed the clear and important benefits this transaction would have brought to Solvinity's customers and Dutch citizens."

That is unbelievably rich. It's politicians job to protect the privacy and interests of its citizens. Must be a strange idea for the US these days.

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fusslotoday at 12:54 PM

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

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wildekektoday at 3:06 PM

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?

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kleiba2today at 1:41 PM

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

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petcattoday at 12:58 PM

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.

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bencedtoday at 4:09 PM

The concerning thing for the EU should be that this valuable firm had no European capital trying to buy it. The Dutch have protected their sovereignty today while decreasing the incentive for the next entrepreneur to make something on European shores. Probably the best choice but doesn't change the structural problem.

iamalizardtoday at 5:21 PM

Can someone tell me what actual technical issue do identification providers solve that couldn't be solved with a public key cryptography or even a password and 2FA? The whole sector seems like it was created out of corruption and shortsightedness.

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midasztoday at 1:22 PM

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.

applfanboysbgontoday at 12:39 PM

Good on the Dutch government for actually doing something.

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thisislife2today at 1:33 PM

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).

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mkjtoday at 12:44 PM

Solvinity is a pretty terrible company name.

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stego-techtoday at 2:22 PM

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.

hunglee2today at 2:31 PM

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

flosslytoday at 3:17 PM

> Vital digital supplier.

They make the login-screen. And now for businesses there are like 5 providers of the login screen (that you HAVE to use in order to use govt websites): you have to choose one and pay like 40EUR/y in order to log in.

Calling a login screen vital is, yes, the truth.

Out-sourcing --and creating a market for-- the login screen is, to me, one of the most bizarre thing I've seen the Dutch govt do in recent years.

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carlosjobimtoday at 2:14 PM

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?

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_HMCB_today at 1:52 PM

One word: good.

selectivelytoday at 1:36 PM

A ground invasion would be an appropriate response.

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sjamaantoday at 12:49 PM

Best news of the year!

SirFattytoday at 1:23 PM

"US Takeover"

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dncornholiotoday at 3:03 PM

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.

locknitpickertoday at 3:51 PM

From the article:

> Kyndryl said in a statement it was "extremely disappointed" about the decision. "The politicization of this process has overshadowed the clear and important benefits this transaction would have brought to Solvinity's customers and Dutch citizens."

Are these guys so tone-death to the point they even try to gaslight the world? They are trying to take over a nation's ID system. Who in their right mind sees this as anything other than a national security issue?

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gyanchawdharytoday at 2:57 PM

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.

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