Dutch court backs Solvinity DigiD contract despite US data access fears

The District Court of The Hague has rejected an attempt by three Dutch citizens to block the government from renewing its contract with Solvinity, the company responsible for hosting and technically managing systems linked to DigiD.

The plaintiffs argued that Solvinity’s planned acquisition by US-based IT provider Kyndryl could place sensitive data from more than 16 million DigiD users under US jurisdiction, potentially exposing it to US authorities and creating risks to critical public services such as healthcare, pensions, taxes, and unemployment systems.

Despite these concerns, the court ruled in favour of the Dutch State, allowing the agreement to proceed. Judges did not accept arguments that the deal would immediately threaten data security or justify halting the contract.

The decision leaves further scrutiny to the Investment Assessment Office, which is reviewing national security risks linked to the acquisition. The case highlights ongoing tensions around digital sovereignty and data protection in the Netherlands.

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