Brief
London mayor’s office and Palantir end £50 million contract dispute
Both sides withdrew claims after a legal battle over a blocked Metropolitan Police AI contract.
By Felo News Desk · Published
London’s Mayor’s Office for Policing and Crime (MOPAC) and US artificial‑intelligence company Palantir have formally withdrawn the legal claims each had filed against the other, ending a dispute over a £50 million contract, the Independent reported on 14 October 2026.
What happened
Palantir sued MOPAC in the High Court in June after the mayor’s office halted a two‑year contract that would have allowed the Metropolitan Police to use AI for automated intelligence analysis. The mayor, Sir Sadiq Khan, blocked the deal in May, saying the police had not presented a procurement strategy for approval, a breach that City Hall said prevented value‑for‑money checks.
In June, Palantir alleged that MOPAC had exercised an “unlawful veto” by factoring the firm’s “values and ethics” into the decision. MOPAC denied the allegation, stating that any media reports suggesting a values‑based assessment were inaccurate.
On Wednesday, both parties issued statements confirming that they had each formally withdrawn their claims, effectively ending the legal fight.
What the reports add
The Independent notes that, despite the settlement, Palantir remains in the bidding process for a new Metropolitan Police contract slated for a spring decision. MOPAC said the force had only seriously considered Palantir for the original contract and that the police had failed to submit a proper spend proposal.
What was said
Sir Sadiq Khan said, “London is the technology capital of Europe, and I am proud that leading software firms choose the city as their home. Palantir makes a significant contribution to jobs and investment in the capital, employing a large number of Londoners whose services have been procured legally by organisations across the UK and beyond,” as quoted by the Independent.
MOPAC’s statement read, “MOPAC recognises Palantir’s concerns that media reporting of a statement from the mayor’s spokesperson before the decision was taken could have incorrectly created the impression that an assessment of the company’s values had been a factor in that decision.”
How it came about
The dispute stems from the mayor’s May decision to block the Metropolitan Police’s AI procurement, a move that MOPAC later described as a breach of procedure because the police did not obtain approval for the spend proposal. Earlier Felo coverage highlighted Sir Sadiq Khan’s broader technology agenda, including traffic‑safety initiatives and climate‑related forecasts, underscoring the mayor’s focus on positioning London as a tech hub while navigating procurement scrutiny.
Key facts
- MOPAC and Palantir withdrew all legal claims against each other (independent.co.uk)
- The dispute centred on a £50 million AI contract for the Metropolitan Police (independent.co.uk)
- Sir Sadiq Khan blocked the original contract in May 2026 (independent.co.uk)
- Palantir remains in the bidding process for a new Met police contract due in spring (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “London Mayor’s office resolves £50m contract dispute with US AI giant Palantir”
