Palantir and London end dispute over £50 million police contract

What the dispute was about

The Metropolitan Police planned to use Palantir’s Unified Operational Analytics system to process intelligence during criminal investigations. In June, Palantir sued the Mayor’s Office for Policing and Crime (Mopac) after Khan intervened in the decision to award the company a two-year contract. Khan had called the procurement process a “clear and serious breach” of the rules.

The dispute also carried a broader political charge. Palantir works with the Israeli military and the Trump administration, which has intensified measures against migrants. Khan had previously said Londoners wanted public money to go only to companies that “share the values of our city.”

Palantir UK and Europe head Louis Mosley accused Khan of politicising procurement and “putting politics above public safety.” He argued that Londoners value not becoming victims of robbery or rape by a serving police officer.

What the settlement says—and leaves open

The joint statement says Mopac’s May 2026 decision not to award the contract “was not based on Palantir’s values or ethics or any wider publications about the company.” Mopac acknowledged that comments from the mayor’s representative before the decision could have given the impression that Palantir’s values had been considered.

The office said it assessed the spending proposal within its authority, applying the relevant legal and procurement criteria. It also considered governance, affordability and benefits for Londoners.

Khan said London was Europe’s technology capital and that he was proud leading software developers chose to work there. Palantir, he added, contributes significantly to jobs and investment in the capital, and organisations across the UK and beyond lawfully use its services.

The settlement came a month after Palantir hired former Labour deputy leader Tom Watson as a full-time lobbyist. The company had feared that public bodies could exclude it from contracts because of objections to its leaders’ views, limiting its work in the UK.

That concern extends beyond policing. Palantir is also trying to retain its £330 million contract to work with NHS medical data, amid public and parliamentary calls to end the deal and replace the company with a less controversial provider.

Watson said Khan and his team had acknowledged that their actions could have created the impression that the UOA contract was blocked because of Palantir’s values. He welcomed the correction, saying technology adoption decisions could still be made on their merits and in the public interest despite strong pressure from organised groups.

I think the settlement resolves the narrow question of why the previous bid was rejected, not the harder one of whether Palantir should win the next contract. Mopac has agreed to treat the company fairly and equally if it bids, but is not obliged to select it.

The new £50 million tender is already underway. Neither side admitted liability or paid compensation, and each will cover its own legal costs. The next decision will test whether a procurement process can be separated, in practice as well as in wording, from the fight over what Palantir represents.