Six new technologies added to Dutch investment screening in line with European trend

To prevent strategic knowledge and technology from falling into the hands of parties that pose a threat to national security, the scope of the Dutch general investment screening regime will be broadened. This regime − set out in what is known in the Netherlands as the "Vifo Act" − covers investments in vital providers, companies involved in sensitive and highly sensitive technology, and operators of business campuses (see our June 2023 article explaining the regime here).

Broader scope of screening

Under the Vifo Act, the Dutch Minister of Economic Affairs and Climate has designated technologies that are considered sensitive or highly sensitive. In June 2026, the government published an amendment to this regime aimed at broadening the scope of the Vifo Act.

Under the current regime, certain technologies are already designated as "highly sensitive": quantum technology, photonic technology, semiconductor technology and high-assurance products. Six new technologies will now be added to that list:

• advanced materials
• biotechnology (including stem cell technology and seed breeding for which synthetic or stem cell technology, gene editing, or genomics are used)
• artificial intelligence (AI) systems used for: (1) general‑purpose AI models as defined in the EU AI Act that are suitable for the development of space or defence applications, and (2) general‑purpose AI models with a systemic risk as defined in the EU AI Act, including AI systems used for personal tracking and imitation, for example deepfakes
• nanotechnology
• sensor and navigation technology
• nuclear technology for medical purposes.

The definition of AI in the amendment is much broader than in the earlier consulted version, which was limited to AI systems used for personal tracking and imitation alone. Because the recently adopted recast of the EU FDI Regulation requires minimum harmonisation (see further below), the Dutch government has already classified the AI models mentioned above as "highly sensitive" under the Dutch Vifo Act.

In addition, the scope of what is "highly sensitive" has been widened to include two technologies that are currently classified as "sensitive", namely those related to:

• information security, and
• satellite communications, including laser satellite communications.

Note that not all information security and satellite communication technology is covered after the amendment, but only information security and satellite communication technologies which also qualifies as dual-use due to their possible use for military purposes.

The amendments have been submitted to both chambers of parliament and will subsequently be referred to the Council of State for its advice. Provided that the procedure proceeds as planned, the expansion will take effect on 1 January 2027.

Lower notification threshold

Investments in these "highly sensitive" technologies are considered to pose a higher risk to national security than other sensitive technologies. A lower notification threshold therefore applies to investments in "highly sensitive" target companies. Where a change of control in a sensitive technology company may normally trigger a notification requirement, the threshold for "highly sensitive" technologies kicks in where a party acquires or increases "significant influence". Such influence may exist if 10%, 20% or 25% of voting rights can be exercised or if there is a right to appoint or dismiss one or more board members. An increase in significant influence from 10% to 20%, or from 20% to 25% in voting rights will trigger subsequent notification, meaning that the notification process can be recurring in the event of a staggered acquisition of voting rights.

The current "sensitive" technologies in the Dutch regime are: military goods and dual-use goods covered by the EU Dual-Use Regulation, although certain dual-use goods related to graphite, ceramic materials and structural composites for filament-winding machines have been explicitly excluded from this category.

It's important to point out that not only the general screening regime will be broadened. Effective 1 January 2026, investment screening in the Dutch energy sector was also expanded by a lowered threshold for power plants and a broader scope for LNG installations (see our article here).

More notifications and gun-jumping fine

Dutch investment screening bureau BTI, which assists the Minister for Economic Affairs and Climate, has published its 2025 annual report. In 2025, the Minister decided 76 cases: 66 investments were unconditionally approved, 2 were approved subject to conditions and 8 notifications were found inadmissible because they were out of scope. The Minister also issued a gun-jumping fine for not notifying an investment that had met the notification thresholds.

In 2025, the average screening procedure took 40 days, while the longest screening procedure took 176 days. The number of notifications increased from 69 to 78, mainly due to a rise in investment in sensitive technologies. Approximately 50% of these notifications related to investments in military and dual-use goods; the other 50% involved other forms of sensitive and highly sensitive technologies.

The number of notifications is expected to continue growing in 2026 due to the further expansion of the screening regime's scope.

Prohibitions under the Dutch investment screening regimes

The BTI has informed the public of two decisions prohibiting notified investments. The Minister later approved one of these prohibitions (but subject to conditions) after an administrative appeal. Among other things, this was due to newly available information during this administrative appeal.

The Solvinity case

At the end of May 2026, the government prohibited the takeover of the Dutch company Solvinity by the US firm Kyndryl. The decision, which follows the BTI's negative advice, has not been published, but parliament was informed about it in a government letter. Solvinity is an IT company that provides services to parties including the Dutch State. After a European tender in 2020, which it won, Solvinity designed and built a platform for the Dutch State on which various government applications are hosted and operated. These applications include Dutch digital identification system DigiD. Solvinity has been wholly owned by the British private equity fund Vitruvian Partners since 2014, when the current Dutch investment screening regime was not yet in place.

The decision to block the takeover is based on the Dutch Telecoms Act (see our article on this regime here) and not on the general FDI screening regime under the Vifo Act. Telecoms Act screening rules do not contain a standstill obligation. This contrasts with the Vifo Act and the Dutch Competition Act, which do include a standstill obligation for notifiable transactions. The process to take a decision prohibiting this investment was speeded up to prevent completion of the notified transaction taking place. Solvinity and its majority shareholder have launched summary proceedings against the Dutch government's decision.

EU developments

Recast of EU FDI screening regulation

Although investment screening to protect national security remains a domestic competence of the EU member states, the EU has introduced a regulation to coordinate national screening regimes. At the beginning of June 2026, the Council of the EU adopted a recast of this regulation after the European Parliament had adopted it in May. This recast contains minimum harmonisation on both procedural and material issues, including a common minimum scope for all member states. This means that member states must screen investments in companies active in AI, semiconductors or quantum technology. The recast only concerns inbound investments. Outbound investment screening could be the next step in the development of this regime (see our article here).

With the recently proposed Dutch amendment, AI falls within the scope of the Vifo Act as highly sensitive technology, whereas semiconductors and quantum technology are already covered. The other technologies that fall within the scope of the Vifo Act because of the amendment lie outside the mandatory minimum scope of the EU regulation recast. The regulation does not prevent member states from bringing sectors and technologies that fall outside that mandatory minimum scope under their national security screening system.

Industrial Accelerator Act proposal

Apart from the recast, the EU has also introduced new policy on resilience of its economy to promote strategic sovereignty. This has already led to some concrete proposals by the Commission, for example the proposed Chips Act 2.0 and the Cloud and AI Development Act at the beginning of June 2026. Another proposal is the Industrial Accelerator Act establishing a framework of measures for accelerating industrial capacity and decarbonising strategic sectors (IAA). This proposal includes an additional, separate merger control regime empowering the Commission to carry out investment screening. This additional screening regime adds to national investment screening based on national security and runs in parallel to the Commission's merger control powers under both competition law and the Foreign Subsidies Regulation (FSR).

In this context, the Dutch government regards resilience as an overarching concept, centred on the ability to mitigate social, economic and security risks and reduce strategic vulnerabilities. It holds the view that economic security forms part of national security in this regard. This involves, among other things, the protection of vital economic processes, critical infrastructure, key technologies and of value chains, and the reduction of high-risk strategic dependencies, and the prevention of undesirable flows of knowledge, technology and of capital that could affect national security.

On investment screening, the Dutch government will focus on clearly defining and firmly establishing the relationship between the IAA and the FDI Regulation to minimise any extra administrative burdens. For this reason, the government has expressed clear doubts about the need for additional investment screening, on top of the national investment screening regimes aimed at economic security. The Commission has not sufficiently explained the need for this additional investment screening under the IAA and risks duplication, according to the government.

Implications for businesses

The broadened scope of both Dutch and European investment screening in the technology sector means that a wider range of investments may require close scrutiny to ensure compliance with the new framework in the future. This scrutiny already applied to inbound FDI, but more investments in the Dutch technology sector will fall within scope. Although the entry into force of the Vifo Act amendments is planned for 1 January 2027 at the earliest, ongoing deals that have not been closed by then may be affected