Palantir and Mayor’s Office Settle Met Police Contract Dispute

London Mayor Sadiq Khan’s policing office and US technology firm Palantir have settled their High Court legal dispute over a blocked £50 million software contract. Both parties withdrew their allegations on Wednesday, clearing the way for Palantir to compete in a fresh procurement process for the Metropolitan Police.

Palantir and Metropolitan Police Settle High Court Dispute

Palantir had initiated legal action in the High Court in June after the Mayor’s Office for Policing and Crime intervened to stop the Metropolitan Police from signing a two-year, £50 ​million contract. The agreement would have deployed Palantir’s artificial intelligence tools to automate intelligence analysis, handle criminal investigations, and examine evidence under a system known as unified operational analytics.

The dispute was scheduled for a full High Court trial in January. Instead, both parties reached an amicable resolution on Wednesday, agreeing to withdraw all allegations against each other without admitting liability. Each side will cover its own legal expenses. No damages have been paid by either party, and both sides agreed not to make any financial payment to the other.

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.

Tom Watson, Palantir vice-president

Clarifying Procurement Rules Versus Corporate Values

The controversy initially flared when MOPAC refused to approve the arrangement, telling the Metropolitan Police that the force had failed to conduct an open competition. Deputy mayor for policing and crime Kaya Comer-Schwartz described the failure to seek prior approval as a clear and serious breach of procurement rules in a letter to Met Commissioner Sir Mark Rowley. In July, lawyers representing MOPAC accused both the Met Police and Palantir of coordinating to fix the outcome of the procurement process in breach of the rules.

Public friction intensified after statements from a mayoral spokesperson pointed to concerns over Palantir’s work with the US military and immigration services, alongside the political views of co-founder Peter Thiel, drawing attention to European wariness regarding reliance on US technology platforms. Khan had previously argued that public money should go only to companies that share the values of the city. Louis Mosley, who heads Palantir in the UK, called the suggestion to use a break clause irresponsible.

Under the terms of the settlement, MOPAC issued a joint statement clarifying that its original decision was not based on Palantir’s values or ethics or wider reporting about the company. The mayor’s office acknowledged that earlier media reporting could have created a contrary impression and stated explicitly that it has never operated a policy against contracting with the firm. The resolution also removes the requirement for London Mayor Sadiq Khan to have his personal text messages and emails searched as part of the legal proceedings.

Blocked Contract Forces Staffing Reductions to Manage Budget Shortfall

The blocked technology contract carried immediate operational consequences for London’s police force. Defending the procurement process as legally and commercially compliant, Commissioner Sir Mark Rowley warned the London Policing Board that stopping the deal forced difficult staffing reductions amid severe financial constraints.

The Palantir platform would have allowed the Metropolitan Police to cut 500 jobs to help manage a budget shortfall of £100 million for the year and £125 million the following year. Sir Mark noted that officer numbers per 100,000 population in March 2026 stood at their lowest level since 1981, and that the budget for 2026/27 included plans to cut a total of 1,150 jobs across the force.

Alongside the settlement, the Met began a fresh competitive procurement process for the intelligence software, with MOPAC confirming that Palantir is welcome to participate in the renewed bidding.