The technology firm Palantir is challenging a decision by the Mayor of London, Sir Sadiq Khan, to block a £50 million contract with the Metropolitan Police, arguing that the cancellation was unlawful and driven by objections to the company’s ethics. Palantir, a US-based tech company with a history of working with the Israeli military and US immigration authorities, sought to provide the Met with tools to automate the analysis of intelligence for criminal investigations under a two-year partnership.

In submissions to the High Court, Palantir contended that the Mayor’s decision unfairly targeted the company due to ethical concerns rather than procurement principles. Lord Pannick KC, representing Palantir, argued that the assessment of the company’s values and ethics had an “unlawful and non-transparent” influence on the cancellation. Palantir is seeking a legal declaration that the Mayor’s Office for Policing and Crime (Mopac) acted unlawfully and an order to reinstate the contract.

The Metropolitan Police expressed support for Palantir’s challenge, warning that the loss of the contract would force the force to reduce front-line policing jobs and make other cost cuts that could undermine efficiency. According to the Met’s submissions, Sir Sadiq’s move will result in “unpalatable additional cuts to significant front-line policing services.”

However, Mopac defended its decision, stating that the cancellation was due to a “clear and serious breach” of procurement rules. The office maintained that the Met had only considered Palantir’s proposal during the tender process, rather than conducting a proper competitive evaluation. Joseph Barrett KC, representing Mopac, argued that Palantir had failed to provide evidence to support its claims and that the decision not to approve the deal was well within Mopac’s discretion.

Beyond policing, Palantir has faced controversy over another major contract in the UK. The company won a £330 million deal in 2023 to operate the NHS Federated Data Platform, which is credited with improvements such as faster cancer diagnoses and reductions in hospital discharge delays. Nonetheless, there has been public concern about Palantir’s involvement in managing sensitive health data, with some MPs warning that mistrust of the firm could discourage patients from sharing critical health information. Activists are also campaigning for the government to sever ties with Palantir over its broader ethical practices.

The legal challenge adds to ongoing debates around procurement transparency, public trust in technology providers, and the balance between innovation and ethical considerations within public sector contracts. The High Court is expected to review the submissions in the coming weeks.