ACM: concerns about acquisition of Solvinity are not related to competition

The Netherlands Authority for Consumers and Markets (ACM) does not see any competition problems emerging or increasing as a result of the acquisition of IT service provider Solvinity by Kyndryl. The concerns among Solvinity’s customers in the public sector relate to the digital autonomy of the Netherlands. ACM’s statutory merger assessments focus on risks to competition. In its investigation into this acquisition, ACM has assessed whether the concerns about digital autonomy are the result of a reduction in competition. That is not the case. That is why ACM has cleared this acquisition.

Both companies provide IT services to businesses and government organizations, including management and maintenance of critical IT systems. ACM’s investigation has revealed that buyers will continue to have sufficient choice of other Dutch and European providers that offer similar services. In addition, the market shares of both these companies in the IT services sector are limited. That is why ACM does not expect any negative effects on competition in the market.

Concerns about digital autonomy

Concerns have been voiced by lawmakers as well as in the media regarding the dependence on non-European companies when it comes to vital, public IT services. The planned acquisition of Solvinity by the Dutch subsidiary of US company Kyndryl heightens the concerns about digital autonomy, in part because of the fact that Solvinity manages the infrastructure on which the Netherlands’ national identity management system DigiD runs. In ACM’s investigation, too, buyers have raised concerns about the possibility of interference in IT services of Dutch government organizations if Solvinity were to be owned by Kyndryl. Buyers from the public sector fear that, after the acquisition of Solvinity, the US government can demand access to digital data on the basis of US laws, and can shut down vital IT services of government organizations or threaten to do so. These public buyers have joined forces in the Taskforce on the continuity of IT services (in Dutch: Taskforce Continuïteit ICT Dienstverlening). This taskforce falls under the Dutch Ministry of the Interior and Kingdom Relations (BZK).

ACM comes to the conclusion that, after the acquisition, sufficient competition will remain in the market. The investigation has revealed that, even after the acquisition, buyers from the public sector will continue to have sufficient choice of other IT service providers that offer similar services, both Dutch and European providers. Another finding is that buyers are able to reduce their dependence by asking less customization, by splitting contracts between different providers, and by including exit strategies in the contracts, with which they can switch more easily.

The Netherlands' Digitalization Strategy

ACM underscores the importance of increasing the Dutch government’s digital autonomy, and points to the Netherlands' Digitalization Strategy. With this strategy, the Dutch government wishes to make the IT infrastructure more independent of external parties. One way of doing so is by taking control of the management of vital infrastructure. In addition, ACM sees opportunities for Dutch government organizations to strengthen their positions through collective bargaining and joint procurement.

Collaboration

In the investigation, ACM was in close contact with the aforementioned taskforce as well as with the Dutch investment screening authority (Investment Screening Bureau, or BTI), which is part of the Dutch Ministry of Economic Affairs and Climate Policy (EZK). BTI assesses whether an acquisition carries risks for national security, for example because of access to sensitive information or influence on vital digital infrastructure. ACM has shared the results of its investigation with the taskforce and with BTI.

See also

• Mergers, acquisitions, and joint ventures (in Dutch)

More in this case

• 26-02-2026 Summary of clearance decision regarding acquisition of Solvinity by Kyndryl (in Dutch)
• 21-11-2025 Kyndryl Nederland wishes to acquire Solvinity Group (concentration notification) (in Dutch)