In a letter to the national parliament published on Tuesday, the Secretary of State for the Digital Economy Willemijn Aerdts said the national authority responsible for inspecting investments has advised the government to prevent the purchase. The purchase was seen as a “possible risk to the public interest.”
The government on Monday decided to adopt the advice and block the purchase, Aerdts said.
“The Netherlands greatly appreciates the presence of foreign companies, especially American technology companies, and their added value to the Dutch economy and digital infrastructure, but maintains, at the same time, an independent investment screening system aimed at protecting the public interest and which applies equally to all investors, regardless of their country,” read the letter.
The decision comes a week before the European Commission unveils its technology freedom package, a set of proposals to reduce Europe’s dependence on foreign technology in the areas of the cloud, microchips and AI.
Kyndryl did not respond to a request for comment in time for publication.
