Netherlands blocks US takeover of vital digital supplier (politico.eu)

368 points by vrganj 6 hours ago

mcv 5 hours ago

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.

jorvi 4 hours ago

It is a bit more complex tham that.

Logius is the company that actually owns and manages the DigiD stack, it's just that they hired Solvinity for their expertise. AFAIK Solvinity can't access the data.

I can't find it right now, but on Tweakers there was a long comment by someone on the inside that explained Logius basically had almost no know-how of how the current stack works, and there's lots of bespoke stuff. Basically classic vendor lock-in. The government (rather, Logius) now really wants to transition away from Solvinity, but that will likely be a 5+ year process.

I also feel like this is another thing that the "fast ring" of the EU should do together. Take Estonia's stack as a base, and then countries like Sweden, Denmark, Finland, The Netherlands adopt it and co- develop it. Make it extensible for the bespoke things the countries need, and every few years check which bespoke extensions can actually be generalized and modularized. Would lead to a much better product. A man can dream :)

frevib 3 hours ago

> AFAIK Solvinity can't access the data.

Solvinity is the hoster. It can fully access the stack.

crote 3 hours ago

mcv 4 hours ago

How can you be sure that Solvinity can't access the data if Logius doesn't know how the current stack works? 5+ years to migrate sounds really bad.

Muromec 4 hours ago

Estonia's tech was cool maybe 20 years ago. From what I understand it's a bit too hard on fetishization of PKI and Ukraine goes too hard on apps. Netherlands actually gets it really well with DigId that is doing bare minimum needed to actually perform eidas stuff without getting into the woods with legally blessed asn1 schemas and oid [0].

I'm not sure what bespoke stuff they invented to get their sweet vendor lock in eurobucks, but the whole thing is nothing more than an OAuth provider for 19 million people. I guess NFC integration in the app that reads physical ids is on a fancier side, but I suspect on that side it's vendor locked by card vendor and their SDK.

[0] https://zakon.rada.gov.ua/laws/show/z1398-12#Text

Teever 2 hours ago

NoahZuniga 4 hours ago

Logius is actually not a company but a part of the dutch (national) goverment.

Muromec 4 hours ago

shiandow 4 hours ago

hermanzegerman 3 hours ago

The German eID stack does also work well, just as the Austrian one does.

Tbh I like the German one even better because you need your physical Identity Card and can use your phone as the reader

krzyk an hour ago

edwinjm 20 minutes ago

*for months

hvb2 5 hours ago

> 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,

Given what we know now, this seems perfectly logical. It's just that we don't know what else is going on behind the scenes.

I'm sure there was some negotiations on how to keep the data separate or something, with the threat of blocking it altogether as a final solution.

But agreed, this is a good outcome

monegator 5 hours ago

> I'm sure there was some negotiations

which i'm sure the current administration would honour

There should be grave consequences alone for the fact that the goverment acted against the parliament

hvb2 5 hours ago

Muromec 3 hours ago

cyanydeez 2 hours ago

lets be frank, these are changes caused by the downgrading of the American administration to a subscription services behind a paywall that requires DLC, root based encryption bypasses and a Clippy popup that instead of trying to be helpful is indistinguishable from a mafia racket.

tcp_handshaker 4 hours ago

>> Finally!

You are behind the curve. You read here first. Lets revisit this comment in 2 years...

This will be overturned by both Dutch and European courts after the company appeals, and specially after Mark Rutte Daddy calls. The only purpose of this action is for the Dutch government to save face, and its for internal consumption. They already have the internal legal advice stating this, hidden away in some closet. But then they will say: You see, we wanted to do it but a court blocked us.

>>Of course there's still plenty of sensitive data in the hands of Microsoft, Amazon and other US companies.

The WHOLE Dutch diplomatic and broader civil service, including the Ministry of Foreign Affairs, runs extensively on Microsoft infrastructure for its daily operations, cloud services, and email. And they leak....

"Microsoft Accused Of Sharing Dutch Officials’ Data with U.S. Government" - https://www.yahoo.com/news/politics/articles/microsoft-accus...

This will also be the core legal argument by the appealing company. They will argue that the decision was politicized, insufficiently reasoned, or disproportionate because binding technical/legal safeguards would have solved the risks... And they will use as example, the diplomatic service extensive use of Microsoft :-)

So is nothing more than another Polder hypocritical take, by the Dutch government.

Aaargh20318 3 hours ago

> They will argue that the decision was politicized,

It’s not ‘politicized’, it’s the gateway to all Dutch government services and as such it is inherently political.

> insufficiently reasoned, or disproportionate because binding technical/legal safeguards would have solved the risks...

There are no legal safeguards against the CLOUD act. There can be no technical or legal safeguards as long as the physical hardware is owned by a US company.

Muromec 3 hours ago

>The WHOLE Dutch diplomatic and broader civil service, including the Ministry of Foreign Affairs, runs extensively on Microsoft infrastructure for its daily operations, cloud services, and email. And they leak....

There is a broad digital strategy to migrate off from American infra. Will take 10 years, but this stuff has inertia once it starts moving.

noirscape 3 hours ago

In 2 years the contract is up for renegotiation to a different entity (and there's now plenty of political pressure to go with a different one), so I don't think it's a problem by then.

Tying the process up in the courts for that period is also a political victory, since by the time it'd be resolved, Solvinity wouldn't have the contract anymore anyways.

mcv 4 hours ago

> This will also be the core legal argument by the appealing company. They will argue that the decision was politicized, insufficiently reasoned, or disproportionate because binding technical/legal safeguards would have solved the risks... And they will use as example, the diplomatic service extensive use of Microsoft

How would that argument support a sale to the US? It sounds like the perfect argument against it. Those technical/legal safeguards clearly didn't work for Microsoft either.

tcp_handshaker 4 hours ago

j_maffe 4 hours ago

> Mark Rutte Daddy calls

Mark Rutte, the chief of NATO and ex-PM, that has nothing to do with civilian tech? Can we please leave unfounded conspiracy theories to Reddit?

tosti an hour ago

tcp_handshaker 4 hours ago

hvb2 4 hours ago

mschuster91 4 hours ago

bilekas 2 hours ago

> "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.

fusslo 5 hours ago

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

Cthulhu_ 4 hours ago

I wish more news outlets actually stated so - Kyndryl was formerly IBM, has 73.000 employees worldwide. When this news first broke, nobody had ever heard of it so it sounded like some small random hosting company, but it's huge.

pantulis 3 hours ago

Nobody gets fired from hiring Kyndryl.

frevib 3 hours ago

wildekek 3 hours ago

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?

dncornholio 3 hours ago

30k requests and hour? A 5 euro VPS can handle this easily.

jabl 2 hours ago

If the owner of the stack (Logio or whatever it was called, see upthread) doesn't understand it, the consultants will run wild and soon it will require a hectare-sized datacenter running a zillion containers, and another DC for HA of course.

kleiba2 4 hours ago

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

danslo 4 hours ago

DigiD itself is government-owned, but its infrastructure is managed by Solvinity (a private company). Not really different from the US gov running half its stack on AWS.

kleiba2 4 hours ago

Okay, maybe let's not take the US as a point of comparison.

danslo 4 hours ago

Cthulhu_ 4 hours ago

Because too few IT capable people are willing to work under the government's pay scales; in most cases going private / corporate earns more. So most Dutch IT projects end up with private companies, which also means that, in the case of DigID and the secure / official messaging platform, the hosting party can charge exorbitant rates. Did you know it costs 25 cents to send a message via the Berichtenbox? So when the government does its annual "it's time to fill in your taxes" message, they have to pay millions. Assuming they don't get a bulk deal, anyway.

mechazawa 3 hours ago

There are plenty of people who are willing to work for the government and the pay is pretty decent. But their stack is often Microsoft based and their IT is located in Apeldoorn.

Who in their right mind would want to travel all the way to Apeldoorn.

A good example of internal development in the government is the police. They have internal development teams.

usrnm 2 hours ago

edwinjm 2 hours ago

Muromec 3 hours ago

For the record, Logius (the government owned enterprise dealing with DigID) vacancy for Java developer: https://www.werkenvoornederland.nl/vacatures/lead-java-devel... . 92k EUR per year for whatever they measure as 40 hours a week (I bet they close the shop at 4 pm).

>Did you know it costs 25 cents to send a message via the Berichtenbox?

In a country with paid toilets what do you expect lol

Vespasian 3 hours ago

exceptione 3 hours ago

1. Neoliberal doctrine: government=waste, company=efficient, let's privatize.

2. The ruling party for over a decade is the VVD, a Republican Party with training wheels, with Tea Party like spinoffs in varying degrees over rabid idiocy. The VVD heavily depend on a small network of big donors and as such are strongly nudged to source the policy advice from those networks. The IT backbone of those government agencies are thus run by big corporate IT shops, which is also politically convenient as you can shrug of responsibility when it turns out there is some light between the theory and the practice of the neoliberal doctrine.

AndyMcConachie 3 hours ago

I know people that work as contractors for the Dutch government. The government doesn't save money by hiring them through contractors. They cost more through contractors. But contracting allows private companies to act as gatekeepers and pocket some cash for essentially supplying full time employees. It's a form of corruption by well connected private contracting companies.

Nevermark 4 hours ago

Apologies in advance for wasting anyone's time with a light hearted tangent. But as I scrolled past your comment I read:

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

It was the funniest thing I have misread in a while.

conceptme 4 hours ago

because privatisation

petcat 5 hours ago

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.

NietTim 5 hours ago

This is not some sort of company making unique tech, it's a company handling some of the most the vital infrastructure for our government, you can imagine the privacy concerns. Completely different case

petcat 5 hours ago

Sure, but the point is that it's tit-for-tat. This US administration is petty.

Epskampie 4 hours ago

midtake an hour ago

exceptione 3 hours ago

wongarsu 5 hours ago

In 2013, the same deal would likely have gone through. US-Dutch relations looked very different in 2013 under Obama than they look now under second-term Trump. Any reciprocity today based on things Obama did back then falls flat because we all know Trump opposes nearly everything Obama ever did

gpvos 5 hours ago

Absolutely, no one would have batted an eyelid.

iamalizard 38 minutes ago

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.

benced 2 hours ago

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.

midasz 5 hours ago

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.

applfanboysbgon 5 hours ago

Good on the Dutch government for actually doing something.

wolvoleo 2 hours ago

At the same time they're allowing the tax office to migrate completely from a self hosted solution to office 365 do there's that.

They had to be dragged kicking and screaming into doing this. Several attempts were made to force them to block the takeover. Not sure what caused their latest turnaround.

spwa4 5 hours ago

All governments are "doing something". It just isn't at all effective and mostly because they're unwilling to invest even marginal amounts.

Like in this case. The technology here utterly depends on Google Play Services on Android or App Attest on Apple (or "secure enclave"), and that is in fact essentially the only functionality.

This could have been solved instead switching to a standard (switching to OATH, RFC 4226 and RFC 6238), thus killing the dependency on Google/Apple while still allowing those devices to work smoothly, but also allowing a Linux implementation, allowing anyone . Plenty of European companies provide implementations for this, some with and some without the dependency on Google/Apple attestation.

applfanboysbgon 4 hours ago

I'm not talking about some abstract sense of "did the government do anything at all today", I am saying "good on the government for doing something in this specific case instead of doing nothing and letting it be sold", which was a possible outcome, and in fact the default outcome of the vast, vast majority of acquisitions is that the government does nothing to intervene.

Could they do something better, sure. I am still glad to see they did something at all.

Vinnl 5 hours ago

I can sign in to DigID without using my phone, except sometimes with an SMS verification code. (Of course they want to, and should, phase that out. Hopefully that won't be replaced by app store dependence.)

lxgr 2 hours ago

jeroenhd 2 hours ago

microtonal 4 hours ago

Uhm, no, DigiD works without Play Services:

https://www.logius.nl/actueel/qr-code-scanner-digid-app-werk...

(Also works fine on my GrapheneOS phone with only basic integrity, also worked on microG when I tested.)

thisislife2 4 hours ago

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).

WJW 3 hours ago

It's not only about the data, it's about the risk that the US would basically turn off things like tax collection and doctors' visits in the Netherlands as part of (say) a first strike on Greenland.

Sure, the chance is low. But in the current climate people are nervous and it's best not to risk it. The current government has already embarked on a long-term strategy to bring more of critical software infrastructure back in-country, selling the core identity provider software abroad would go directly against current policy.

hermanzegerman 3 hours ago

Why would the risk be low?

Trump also already sanctioned Justices from the ICC based in Netherlands because he didn't like them.

He's clearly not the guy with impulse control

WJW 2 hours ago

Deukhoofd 4 hours ago

The issue was less privacy concerns, and more "hey lets not hand over one of the most critical pieces of infrastructure to a potentially hostile state". DigID is the user authentication platform for basically every government site in The Netherlands. A foreign government could use sanctions to pressure Dutch individuals to comply by limiting access to it.

Aachen 3 hours ago

> (hopefully, presumably, with your government acting as the gatekeeper)

Exactly, that gatekeeper role is what's the difference here. Do you give all data to another country and ask them for pieces back as needed (whenever someone wants to use DigiD, the country can block it), or do you host it yourself and only share the parts that are relevant for this other country's investigations?

arrowsmith 3 hours ago

> if Netherland has some information-sharing agreements with … Fourteen Eyes

Probably a safe assumption, since the Netherlands is a member of the Fourteen Eyes

dncornholio 3 hours ago

It's not about privacy, it's about control.

mkj 5 hours ago

Solvinity is a pretty terrible company name.

cactusplant7374 5 hours ago

Solvinity = Solvent Divinity

mortarion 5 hours ago

We're terrible at company and brand naming here in Europe. Just look at the "Wero" payment solution (formerly/currently iDeal). Like, who the hell came up with that stupid name?

The list of stupid European company names and product names are endless.

twjdeboer 4 hours ago

I agree, the Dutch iDeal was probably the better name. However I'm not sure if this is an uniquely European problem. Wero's counterpart 'Zelle' doesn't seem to be that much better of a name.

lejalv 2 hours ago

Only English-sounding names are cool. The terminal state of cultural domination.

krior 2 hours ago

Why do you feel that Wero is a stupid name?

Muromec 3 hours ago

It's called Wero, because it means we and euro in all of the official EU languages.

TacticalCoder 5 hours ago

> Solvinity is a pretty terrible company name.

I find it okay'ish. At least it's unique. Say, as much as I like Mario Zechner (who doesn't like HNers anymore for whatever reason), naming your product "Pi" is just terribly bad.

Facebook was a good name (hate the company but the name was good). But "Meta" is just dumbfucktarded.

Wait... I've got an idea: I'm going to make a product and name it "Alt". Or "Control".

Really: there are a lot of totally unhelpful name that just confuses everybody, including search engines, humans, and LLMs but I don't think "Solvinity" is that bad.

agmater 5 hours ago

I've always found Whatsapp a terrible name, but its so established now that 'apping' is understood. If you're big enough it seems that a bad name hardly hold you back.

arrowsmith 3 hours ago

amelius 4 hours ago

stego-tech 4 hours ago

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.

hunglee2 3 hours ago

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

flossly 3 hours ago

> 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.

flossly 3 hours ago

Oh, and if you out-source it, then I do not thing you should have a say in whom the contract. Either keep it in house, or out-source.

They contracted the market and now they want to control it as if it's in house.

carlosjobim 4 hours ago

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?

raziel2p 3 hours ago

maybe how much money you are willing to spend isn't a perfect measure of how important something is?

carlosjobim 3 hours ago

It is just about the only measure. People who claim something is extremely important and then will not take any action or spend any money - they're dishonest people.

Let's see if the Dutch are men of their words. I expect the government to offer to buy this company, or an offering being made for the Dutch investing public to get shares.

vrganj 3 hours ago

_HMCB_ 4 hours ago

One word: good.

vrganj 6 hours ago

selectively 4 hours ago

A ground invasion would be an appropriate response.

creaturemachine 4 hours ago

By that we mean, send a whitehouse crony over to throw a temper tantrum on Dutch soil.

Muromec 3 hours ago

Something something, a free ticket to Den Haag

sjamaan 5 hours ago

Best news of the year!

dncornholio 3 hours ago

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.

SirFatty 5 hours ago

"US Takeover"

locknitpicker 2 hours ago

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?

markvdb an hour ago

As per the Dutch language saying: "Trust comes on foot, but leaves on horseback."

Trust breakdowns are costly, except to the vultures "winning" the negative-sum game. Might want to read about the fall of the Warsaw pact.

gyanchawdhary 3 hours ago

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.

gbear605 19 minutes ago

Two thirds of Europeans want this - https://www.techpolicy.press/almost-two-thirds-of-europeans-...

> The figures were almost universal across all categories: 62 percent of those surveyed across the five European countries said they favored or had considered replacing US data storage and payment services, while 59 percent of respondents said they would back a change from American video-conferencing companies like Zoom.

(Technically only five countries in the EU in this survey, but the five most populous countries, and presumably other countries generally agree)

Tepix 3 hours ago

Are you serious? You did notice that there was even a EU digital sovereignty summit recently?

gyanchawdhary 3 hours ago

I didn’t notice. But regardless, a summit doesn't dictate or reflect the desires and opinions of 27 member states and its 450 million citizens and more importantly its companies and business to want to switch to European alternatives.

To give you an example, if India or China or Africa holds a summit on climate change, it doesn’t mean that its citizens want that or even care about it.

Anyway, the idea that such a big geography should move away from the best software factory of the world because it has some political agenda with its current leader is both impossible and overall quite childish and will never come to fruition.