Palantir Technologies' (PLTR) expanding role across the UK public sector represents an "unacceptable point of weakness," a UK parliamentary committee said Wednesday.
The House of Commons Science, Innovation and Technology Committee said the government should either develop an in-house replacement for the platform or seek an alternative from UK-owned and UK-based providers that avoid technical or contractual dependencies.
The committee said its concerns were not ideological or related to the quality of Palantir's products, but reflected risks tied to vendor lock-in and reliance on a small number of suppliers in critical areas including healthcare and national security infrastructure.
Separately, the committee asked the UK government to explain why it awarded a 240 million British pounds ($322.7 million) Ministry of Defence contract to Palantir without a competitive tender process.
Shares of Palantir Technologies were down 2.5% in Wednesday premarket trading.
Comments