The mayor of London has backed down from allegations that a US-based tech company which has supported Israel acts “contrary to London’s values” and issued a statement praising the company’s “significant contribution” to the capital.
Palantir and the mayor’s policing office have settled a legal battle over claims that the technology company was blocked from securing a £50 million Metropolitan Police contract because of its values and ethics.
Sir Sadiq Khan had blocked a £50 million deal between Palantir and the Metropolitan Police, a decision his spokesperson said at the time was over Khan’s “concerns about using public money to support firms who act contrary to London’s values”.
Palantir sued the Mayor’s Office for Policing and Crime (Mopac), claiming that Khan had made a “politicised decision” that was in breach of procurement laws.
Khan initially contested the case, but agreed on Wednesday to settle and admit that his office had “incorrectly created the impression” that an assessment of the company’s values had been part of his decision to veto the contract.
Palantir, which allows large datasets to be analysed easily and is being used by militaries and public services worldwide, has expressed support for the Jewish state.
Khan’s comments in April followed a petition signed by hundreds of thousands calling for Palantir to be blocked or dropped from UK contracts.
In a joint statement on Wednesday announcing the case had been settled – which is understood to have cost the taxpayer up to £3.3m – Palantir and Mopac announced that they had withdrawn allegations.
Mopac confirmed its decision in May not to approve the proposed contract “was not based on Palantir’s values or ethics or any wider reporting about the company”.
It acknowledged that reporting of a statement by the mayor’s spokesperson before the decision “could have incorrectly created the impression that an assessment of the company’s values had been a factor in that decision.
“Mopac is happy to correct any contrary impression.”
The proposed two-year deal would have provided the Met with artificial intelligence technology to automate intelligence analysis in criminal investigations.
Mopac said its scrutiny had centred on procurement rules, governance and value for money.
The settlement leaves Palantir free to compete for the work through a new procurement process.
“Mopac does not have, and has never had, any policy of not contracting with Palantir,” the joint statement said.
“Palantir is free and welcomed to participate, as are all potential providers and they will all be treated fairly, transparently and without discrimination, in accordance with all applicable procurement rules,” the statement went on.
Palantir’s newly appointed senior vice-president Tom Watson welcomed the resolution, saying: “This case sought an answer to a simple question: are the rules that protect taxpayers in public procurement still applied fairly to everyone?”
The former minister and Labour Party deputy leader said: “I’m very pleased that they have today corrected any such impression, and that even in the face of extreme provocation from highly organised pressure groups, decisions about deploying technology can still be made on their merits and in the public interest.”
In a separate statement, Khan praised Palantir’s contribution to the capital.
“London is the technology capital of Europe, and I am proud that leading software firms choose the city as their home,” the mayor said.
“Palantir makes a significant contribution to jobs and investment in the capital, employing a large number of Londoners whose services have been procured legally by organisations across the UK and beyond.”
Palantir has been outspoken in its support for Israel.
Days after October 7, 2023, the company took out a full-page advertisement in the New York Times stating that it “stands with Israel”.
Its chief executive, Alex Karp, said in a March 2024 interview that employees had left over his support for Israel. “We’ve lost employees. I’m sure we’ll lose employees,” he said.
To get more news, click here to sign up for our free daily newsletter.