Palantir challenges UK police contract block, argues ethics concerns improperly influenced decision

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US tech firm Palantir is taking London mayor Sadiq Khan's office to High Court over a blocked £50 million Metropolitan Police contract. The company argues the decision unlawfully considered its values and ethics, while the mayor's office cites procurement failures. The legal challenge comes as Britain reviews a separate £330 million NHS contract with Palantir.

Palantir Mounts Legal Challenge Against Blocked Metropolitan Police Contract

Source: ET

Source: ET

Palantir has launched a legal challenge at London's High Court after London mayor Sadiq Khan's office blocked a two-year, £50 million ($67.06 million) deal with the Metropolitan Police

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. The US tech firm argues the decision to block the wrongly blocked contract unlawfully took into account the company's "values and ethics," which Khan's office denies

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. The Metropolitan Police contract would have enabled the force to deploy AI systems for automating tasks and evidence analysis in criminal investigations.

Values and Ethics Concerns Clash With Public Safety Arguments

Reports quoted a spokesperson for Khan citing concerns that Palantir did not align with "London's values," a characterization the company has criticized as "putting politics above public safety"

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

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

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Procedural Issues Take Center Stage in Official Response

The Mayor's Office for Policing and Crime maintains the contract was not approved due to procedural issues rather than ethical considerations. In court filings, the office stated the Met did not obtain approval for its procurement strategy and only spoke to one supplier, failing to hold an open competition for the contract

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

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Broader Scrutiny of Palantir's UK Government Relationships

The legal challenge unfolds against a backdrop of mounting political pressure on Palantir's UK operations. Britain is conducting a review of a £330 million NHS contract with Palantir, while a parliamentary committee last month declared the company had a "clear mismatch with UK values" and recommended using a break clause . Palantir's British CEO Louis Mosley called the parliamentary committee's suggestion "irresponsible"

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. The outcome of this High Court case could set a precedent for how UK authorities balance AI in criminal investigations capabilities with political and ethical considerations when contracting with controversial tech providers. Watch for the January trial to clarify whether procurement rules or values-based assessments should guide public sector AI systems contracts.

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