Palantir and Sadiq Khan drop legal battle over Met contract

US tech firm Palantir and London Mayor Sadiq Khan have ended their legal dispute over a £50 million police contract. The two parties agreed to drop their allegations against each other, avoiding a high court trial originally scheduled for January. The disagreement arose when Khan intervened to prevent Palantir from receiving the contract due to concerns about the company's values and ethics.

Palantir had sued Mopac, the London mayor's office of policing and crime, in June, alleging a "clear and serious breach" of procurement rules. Khan had previously stated that Londoners wanted public funds to be directed towards companies sharing the values of the city. The dispute was reportedly exacerbated by the hiring of Tom Watson, former Deputy Leader of the Labour Party, as a full-time lobbyist by Palantir.

Mopac clarified that their May 2026 decision to block the contract was not based on Palantir's values or ethics, but rather on statutory guidelines and legal tests related to procurement, governance, affordability, and ensuring value for money for Londoners. Both Palantir and Mopac emphasized that their actions were merit-based and in the public interest.

A revised procurement process for the police tech deal is now underway, with Mopac committing to treating Palantir fairly and equally if it re-applies for the contract.