US tech firm Palantir and London mayor Sadiq Khan's office have settled Palantir's lawsuit over a decision to block a £50 million ($66 million) contract with London police, both parties said on Wednesday.
Palantir had agreed a two-year contract with the Metropolitan Police to use its artificial intelligence systems to automate certain tasks and for analysing evidence.
But the mayor's office refused to approve the deal, telling the Met Police it had failed to have an open competition for the contract, with reports also quoting a spokesperson for Khan citing concerns Palantir did not align with "London's values".
Palantir's supply of software for the US 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 US tech platforms.
The company was challenging the decision to block the Met contract, but Palantir and the Mayor's Office for Policing and Crime said in a joint statement that they had resolved the case and "withdrawn their allegations against each other".
MOPAC's decision not to enter into the contract "was not based on Palantir's values or ethics or any wider reporting about the company", the statement said.
It added that MOPAC "does not have, and has never had, any policy of not contracting with Palantir" and that it was welcome to participate in any procurement processes.
The settlement comes as Britain is conducting a review of a £330 million National Health Service contract with Palantir, while a parliamentary committee 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".