Dutch court upholds ban on US firm's takeover of DigiD login system operator
A Dutch court on Tuesday upheld the government's ban on the takeover of Solvinity, the company behind the Netherlands' DigiD login system, by U.S. firm Kyndryl. The Rotterdam court ruled that the government had acted within legal boundaries and that the ban can remain in place while Solvinity's appeal is considered.
The Dutch government blocked the acquisition in late May over national security concerns. State Secretary Willemijn Aerdts, who oversees digital economy and sovereignty issues, issued the decision based on a report by the Bureau Toetsing Investeringen. Solvinity manages the DigiD system, used by Dutch citizens to access government services, healthcare records, and other sensitive information.
The DigiD system is used by people in the Netherlands to access personal government information from various offices, including tax authorities, benefits programs, and immigration services. It is also used to access patient records from hospitals and connect with insurance providers. Critics raised concerns about a U.S. company potentially accessing confidential information about Dutch citizens or disrupting the system under pressure from U.S. authorities.
The court determined that the ban does not cause irreversible harm to Solvinity and Kyndryl if they have to wait for the appeal decision. Aerdts is due to issue her review of Solvinity's objection by the end of September. The government is now issuing a new tender for the DigiD system to better address sovereignty, defense, and security considerations. News of the takeover caught the Cabinet off-guard, even though the existing DigiD contract was eventually extended.
In the United States, twelve states led by California have filed a lawsuit to block the merger of Paramount Skydance and Warner Brothers Discovery. The states argue that the deal would create a company with excessive market power, harming consumers and workers. The lawsuit is seen as a political move by Democratic officials to curb what they view as unchecked crony capitalism linked to former President Donald Trump.
The states express concerns about reduced competition in the media and entertainment industry, leading to higher prices and fewer choices for consumers. They also highlight potential impacts on workers in the industry.
Meanwhile, Romania's tax agency ANAF is auctioning 773 clothing items confiscated from a company owned by Bianca Drăgușanu. The items were seized in 2024 as part of a tax evasion investigation and will be sold online with photos, descriptions, and starting prices.
In China, Louis Vuitton has filed a lawsuit against the China National Intellectual Property Administration over a trademark dispute involving a Chinese milk tea chain. According to a notice published by the Beijing Intellectual Property Court in May, the lawsuit involves Louis Vuitton Malletier and a Chinese individual, Huang Minyao, as a third party. The French fashion house has been involved in numerous trademark disputes in China this year, with 58 judgments and court summonses published on the country's official court announcement platform. Another 11 trademark infringement cases involving the company are scheduled for hearings between mid-July and the end of August.
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Court: Dutch Cabinet was allowed to ban U.S. takeover of DigiD firm Solvinity The Dutch government has thus far acted within legal boundaries when it blocked the acquisition of Amsterdam firm Solvinity, a Rotterdam judge said in a ruling on Tuesday.
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