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The Lock-In Trap: Procurement’s Role in Creating Unbreakable Tech Monopolies

The Lock-In Trap: Procurement’s Role in Creating Unbreakable Tech Monopolies

Published 4 months ago
Description

On May 25, 2026, the Dutch government blocked Kyndryl’s acquisition of Solvinity, citing national security concerns. But the real story is not the block—it’s how the Dutch government (and many others) inadvertently created a one-vendor monopoly in critical infrastructure through mundane procurement decisions. This episode considers the following:

* The risk of lock-in through repeated government contracts

* Why traditional antitrust tools are useless in these situations

* The true trade-off between digital sovereignty and scale

* Smarter market design solutions for security and competition

This issue is something policymakers, tech leaders, antitrust professionals, and everyone else concerned about critical digital infrastructure need to watch.

Read the full article and graphic analysis: https://blog.econworks.com/p/the-lock-in-problem-how-procurement?r=562wri

Explore more visual economics content: https://econworks.com

YouTube: https://www.youtube.com/@EconWorks-d3e

Substack: https://blog.econworks.com



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