Palantir Technologies Inc., the US data analytics firm, is confronting significant pressure from the UK Parliament. A report released on June 2nd by the House of Commons Science, Innovation and Technology Committee described Palantir as an "unacceptable risk point" within the public sector and urged the government to swiftly terminate its £330 million data platform contract with the National Health Service. The report also revealed that the company secured another £240 million contract from the Ministry of Defence without a competitive tender.
Chaired by Labour MP Dame Chi Onwurah, the committee noted in its report that the NHS Federated Data Platform, led by Palantir, is designed to integrate healthcare service information. The report cautioned that the "growing dependence" of the UK public sector on a handful of major US tech firms like Palantir is creating "serious vulnerabilities" within critical national healthcare and defence infrastructure.
The MPs recommended the government invoke a contract termination clause scheduled for February 2027, shifting to domestic UK suppliers or developing an in-house system to avoid "vendor lock-in." The committee also criticised a "clear misalignment" between Palantir's "values" and UK domestic standards, citing controversial statements by its executives and its record of collaboration with the Israeli military and US enforcement agencies like ICE.
Furthermore, it was disclosed that former Labour Business Secretary Lord Mandelson assisted the company in securing government contracts, prompting early parliamentary motions concerning "revolving door" corruption risks. In response to the criticism, Palantir UK head Louis Mosley countered, stating these critiques were "at the expense of voters' healthcare for the sake of headlines." By Wednesday's midday trading session, shares of Palantir Technologies Inc. (PLTR) were down nearly 5%, impacted by broader market pullbacks and political uncertainty.
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