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Palantir says UK police contract wrongly blocked over perceived 'values' - Finance news and analysis from Global Banking & Finance Review
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Palantir says UK police contract wrongly blocked over perceived 'values'

Published by Global Banking & Finance Review

Posted on July 9, 2026

2 min read

· Last updated: July 9, 2026

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Palantir Contests Blocked London Police Contract Over Values, Ethics Dispute

Overview of the Palantir and London Police Contract Dispute

Background of the Contract

LONDON, July 9 (Reuters) - U.S. tech firm Palantir is challenging a decision to block a contract with London police, arguing on Thursday that London mayor Sadiq Khan's office wrongly took into account the company's "values and ethics".

Palantir had agreed a two-year, £50 million ($67.06 million) contract with the Metropolitan Police to use its artificial intelligence systems to automate certain tasks and for evidence analysis in criminal investigations.

Reasons for Contract Rejection

Procurement Process Concerns

But the mayor's office refused to approve the deal, telling the Met Police in May that the force had failed to have an open competition for the contract.

Ethical and Value-Based Objections

Reports also quoted a spokesperson for Khan citing concerns Palantir did not align with "London's values", which Palantir has criticised as "putting politics above public safety".

Palantir's supply of software for the U.S. military and immigration services, plus billionaire co-founder Peter Thiel's political views, have drawn scrutiny as European governments grow increasingly wary about dependency on U.S. tech platforms.

Legal Challenge and Arguments

Palantir's Legal Position

The company is challenging the refusal at London's High Court, arguing the decision unlawfully took a view of Palantir's values and ethics into account, which Khan's office denies.

Palantir's lawyer David Pannick said the Met "desperately needed technology in order to save money" and that the force argued the deal "would enable them to protect frontline services".

Mayor's Office Response

The Mayor's Office for Policing and Crime, however, said in court filings that the contract was not approved because the Met did not obtain approval for its procurement strategy and only spoke to one supplier.

Judicial Proceedings

Judge Adam Constable said a trial of Palantir's case would take place in January, rejecting the company's request for an earlier hearing later this year.

Broader Implications and Related Cases

National Health Service Contract Review

Britain is also conducting a review of a £330 million National Health Service contract with Palantir, while a parliamentary committee last month said the company had a "clear mismatch with UK values" and recommended using a break clause, a suggestion Palantir's British CEO Louis Mosley called "irresponsible."

Exchange Rate Information

($1 = 0.7456 pounds)

(Reporting by Sam TobinEditing by Tomasz Janowski)

Key Takeaways

  • Palantir argues the Met contract was unlawfully blocked due to ‘values and ethics’ considerations, which the mayor’s office denies.
  • The NHS “Federated Data Platform” contract (worth £330 million) is under review, with calls from MPs and unions to invoke a 2027 break clause amid fears of vendor lock‑in and misalignment with UK values.
  • Widespread industry and political criticism focuses on data sovereignty, transparency, usability, and the ethical implications of relying on a US tech firm tied to controversial figures and agencies.

Frequently Asked Questions

Why was Palantir's contract with London police blocked?
The Mayor's Office refused the Palantir contract due to the Met's lack of open competition and concerns about Palantir's alignment with London's values.
What is Palantir's main argument in challenging the contract decision?
Palantir argues the decision illegally considered its values and ethics rather than focusing solely on procurement procedures.
What is the value and purpose of the Palantir deal with Metropolitan Police?
The deal was for a two-year, £50 million contract to use Palantir's AI for automating tasks and analyzing evidence in criminal investigations.
When will the High Court trial regarding Palantir's case take place?
The High Court trial on Palantir's challenge is scheduled for January.
What other UK contracts does Palantir hold or is under review?
Britain is also reviewing a £330 million National Health Service contract with Palantir, which has faced similar value alignment concerns.

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