Palantir and Sadiq Khan End Legal Dispute Over Met Contract

Palantir Technologies and London Mayor Sadiq Khan have resolved their legal dispute over allegations that Khan blocked the U.S. tech firm from securing a contract with the Metropolitan Police, citing concerns about the company's values and ethics.

The companies announced on Wednesday that they had withdrawn mutual allegations, thereby avoiding a high court trial initially scheduled for January. The legal battle began in June when Palantir sued the Mayor’s Office for Policing and Crime (MOPAC) after Khan intervened to prevent the awarding of a £50 million two-year contract. This contract was intended for Scotland Yard to utilize Palantir's AI system, known as Unified Operational Analytics (UOA), in processing intelligence for criminal investigations. Khan cited a "clear and serious breach" of procurement rules as his reason for intervention.

Palantir, which also provides services to the Israeli military and supported the Trump administration's immigration policies, faced criticism from Khan. The mayor emphasized that Londoners prefer public funds to be allocated to companies aligning with the city's values. In response, Louis Mosley, Palantir's UK and European head, accused Khan of politicizing procurement and prioritizing politics over public safety, asserting that Londoners value their safety from crime.

The resolution of the dispute occurred a month after Tom Watson, former deputy leader of the Labour Party, joined Palantir as a full-time lobbyist. Palantir expressed concern that public authorities blocking contracts based on the values of its leadership could impede its operations in the UK.

Palantir is also contending with efforts to maintain its £330 million contract with the NHS for managing medical data, amid public and political calls for it to be replaced by a less controversial firm.

In a joint statement, Palantir and MOPAC clarified that MOPAC's decision to block the contract was not based on the company's values or ethics. MOPAC acknowledged that media reporting might have mistakenly suggested that Palantir's values were considered. The decision was instead based on MOPAC's statutory responsibilities, focusing on legal procurement standards, governance, and ensuring value for money.

Khan noted that London, as Europe's technology hub, hosts leading software companies, including Palantir, which contributes significantly to the city's employment and investment. Tom Watson added that the mayor and his team acknowledged that their actions might have implied a values-based decision, and he appreciated the correction of this perception.

A new procurement process for the police tech contract is underway, with MOPAC agreeing to treat Palantir fairly if it submits a bid. However, there is no obligation to appoint Palantir. Both parties will bear their legal costs, with no admissions of liability or damages paid.