Palantir Technologies and the mayor’s office for policing and crime (Mopac) announced the termination of their legal dispute on Wednesday, ending a high court case that had been scheduled for January. The conflict originated in June when Khan intervened to block Palantir from receiving a two-year, £50 million contract with Scotland Yard for artificial intelligence services to process criminal intelligence through a system known as unified operational analytics.
Khan had cited procurement rule violations in his decision to block the deal, with previous statements indicating concerns about the company’s values and ethics. Palantir subsequently initiated legal action against Mopac, with company leadership arguing that Khan was prioritizing politics over public safety. The situation intensified following reports that Khan’s office had framed values-based objections in connection with Palantir’s work for the Israeli military and the Trump administration’s immigration initiatives.
In a joint statement, both parties clarified the rationale for their settlement. Mopac stated that its May decision to reject the contract was grounded in statutory obligations to evaluate spending proposals against legal standards and procurement guidelines focused on governance, affordability, and value for taxpayers. The office acknowledged that media reporting of prior statements from the mayor’s office could have created a false perception that company values played a role in the decision.
The resolution follows Palantir’s September recruitment of Tom Watson, a former Labour party deputy leader, as a dedicated lobbyist. The company expressed concern that blocking procurement opportunities based on leadership values would hamper its UK operations. Khan subsequently emphasized London’s status as a European technology hub and acknowledged Palantir’s significant contributions to local employment and investment.
A new procurement process for the £50 million police technology contract is currently underway, with Mopac committing to treat Palantir fairly should the company submit a bid. The settlement included no liability admissions, no damages payments, and each party covering its own legal expenses. Separately, Palantir continues facing scrutiny over its £330 million National Health Service medical data contract, which has drawn opposition from segments of the public and parliament.
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