Palantir Takes London Police Contract Rejection to High Court
Miles Bennett
Palantir is challenging London's mayor for blocking its £50 million AI contract with the Metropolitan Police, arguing that rejecting a vendor on "values and ethics" grounds is unlawful — a case that could redraw the rules for tech companies entering UK public services.
What is this lawsuit actually about?
Palantir negotiated a two-year, £50 million contract with the Met Police to deploy AI for task automation and criminal-evidence analysis.
Mayor Sadiq Khan's office rejected the deal in May, citing two reasons: the Met engaged only one supplier without open tender, and Palantir does not align with "London values."
This means → the dispute goes beyond procurement process. The core legal question is whether a government body can reject a vendor on moral or ethical grounds — something UK procurement law has not clearly answered.
How is Palantir fighting back?
Palantir's barrister David Pannick argued on practical grounds: the Met "urgently needs this technology to save costs" and the contract would "protect front-line services."
Palantir publicly accused the mayor's office of "putting politics above public safety." In plain terms = you used ideology to block a tool the police actually need.
Judge Adam Constable denied Palantir's request for an expedited hearing this year, ruling that the full trial will proceed in January next year.
Why does this go beyond one contract dispute?
Palantir faces a second front in the UK: the government is reviewing its £330 million contract with the National Health Service.
A parliamentary committee last month said Palantir shows "clear misalignment with British values" and recommended activating the contract's break clause — Palantir UK CEO Louis Mosley called the recommendation "irresponsible."
This reflects a broader trend: European governments are reassessing dependence on US tech platforms. Palantir's work for the US military and immigration enforcement, combined with co-founder Peter Thiel's political profile, makes it the most visible target in that reassessment.
What comes next?
The January trial will directly answer one question: does a "values test" have legal standing in UK public procurement?
This means → if the court upholds the mayor's decision, any UK public body could reject a tech vendor on "values" grounds — raising the entry bar significantly.
Conversely, a Palantir win would strip "values" from the procurement toolkit, easing pressure on its NHS contract as well.
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