THE HAGUE, June 10 -- The Dutch government has blocked the American IT company Kyndryl from buying Solvinity, the cloud provider that hosts the digital identity system Dutch life runs on, in a veto that converts Europe's deepening distrust of Washington's reach over American technology firms into administrative fact.

Willemijn Aerts, the junior minister for the digital economy, imposed what the government's decision letter calls a complete prohibition on the acquisition, citing risk to the public interest, TechCrunch reported. The decision, formalized in a letter published this week, ends a deal valued at roughly $115 million that Solvinity's owner, the British private equity firm Vitruvian Partners, agreed with Kyndryl in November.

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