[Deukhoofd]

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.

[troad]

More broadly, I think it's "let's not hand over essential infrastructure to any foreign state". Friendly or not, it doesn't matter.

Private companies ought to have the freedom to do business with whomever they like, but for essential public services, better to assume essential public infrastructure simply must not be offshored at all.

[Deukhoofd]

I don't know about that. I don't think it'd have been a major issue in the country if it were a Belgian or German takeover. It may still not have been desirable, but I doubt the government would have stepped in like they did here.