Palantir has settled its High Court battle with Sadiq Khan’s policing office over a blocked £50m Metropolitan Police contract, following concerns that the decision had been unlawfully influenced by the US tech giant’s values and ethics.
City AM understands the company pursued legal action not only to challenge the decision, but also to make sure it would not face discrimination in future contracts and to repair any reputational damage caused.
The settlement, announced on Wednesday, sees both Palantir and the Mayor’s Office for Policing and Crime (MOPAC) withdraw their allegations, with the company welcomed back into the bidding process.
The dispute began in May, when MOPAC blocked a proposed two-year contract for Palantir to provide AI technology to help the Met automate criminal intelligence analysis.
Palantir argued that the decision had been influenced by political considerations, while MOPAC maintained that the Met had failed to follow proper procurement procedures.
In a joint statement, MOPAC insisted its decision was based on governance, affordability and value for money, rather than Palantir’s ethics.
“MOPAC is happy to correct any contrary impression”, the statement said.
The mayor’s office also confirmed it had never operated a policy against contracting with Palantir and that the company would be welcome to compete in the renewed procurement process.
Palantir re-enters the bidding process
Palantir senior vice president Tom Watson welcomed the settlement, saying the case had sought to establish whether public procurement rules were being applied fairly.
“The mayor and his team have recognised their actions could have created the impression that the decision to block the UOA contract was based on Palantir’s values”, he said.
He added that procurement decisions should be made on their merits, even in the face of pressure from campaign groups.
Khan also praised the company’s contribution to London, saying Palantir supported jobs and investment in the capital.
“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”, he said.
The settlement brings an end to proceedings that had been due for a full High Court hearing in January 2027.
Both parties will bear their own legal costs. Earlier court budgets had put their combined potential costs at more than £8m.
The Met has since begun a fresh procurement process for the AI technology, with MOPAC pledging that all bidders, including Palantir, will be treated fairly.
The settlement comes days after the Met revealed that Palantir’s existing technology had helped uncover misconduct by the head of its Special Constabulary.