London Mayor Sadiq Khan and Scotland Yard are fighting and the reason is America's biggest defence technology company Palantir

London Mayor Sadiq Khan has blocked a proposed £50 million (nearly $67 million) contract between the Metropolitan Police and US technology company Palantir Technologies . For this, a dispute has reportedly emerged between the London mayor’s office and Scotland Yard . According to a report by The Guardian, Khan blocked the deal, citing concerns about procurement procedures and potential legal risks.



The proposed agreement would have allowed the Metropolitan Police to use Palantir ’s artificial intelligence tools to automate intelligence analysis in criminal investigations. However, the Mayor’s Office for Policing and Crime (Mopac), responsible for approving major contracts, reportedly vetoed the proposal after raising concerns about the procurement process.



The mayor’s office said there had been a “clear and serious breach” of procurement requirements and questioned whether alternative suppliers had been adequately considered before Palantir was selected.



In a letter addressed to Metropolitan Police Commissioner Mark Rowley, deputy mayor for policing and crime Kaya Comer-Schwartz wrote, “I have not been provided with any acceptable explanation for this failure, which I regard as a clear and serious breach of the applicable procedural requirements.”



The letter also warned that the procurement approach may expose both Scotland Yard and City Hall to “legal and reputation risks”. Scotland Yard criticised the decision, arguing that delays in adopting newer technologies could have operational consequences at a time when the force is facing financial pressure.



“The decision by Mopac is disappointing. We need to modernise and use the very best technology available. We must be able to innovate at a faster rate than hostile states and organised criminals. For now, this decision prevents us using technology already available to the MoD, the NHS and other police forces,” a Metropolitan Police spokesperson said.



Why London wants tighter scrutiny over Palantir and Met Police deal



The blocked proposal would have become Palantir’s biggest policing-related contract in Britain, adding to previous agreements with NHS England and the UK Ministry of Defence.



London City Hall maintained that tight budgets make oversight of large public contracts more important. A spokesperson for the mayor said it was “even more important that robust processes are followed when awarding contracts as large as £25m a year”, adding that Londoners would expect scrutiny over whether such agreements deliver value for money.



The dispute has also renewed debate around long-term dependence on large technology firms. In a statement to the publication, Khan said, “In general terms, what you’re allowing is these private companies to almost have a loss leader, so they give you a good deal or something for nothing for a short bit of time [and] you can become reliant upon them.”



The Metropolitan Police is reportedly dealing with a £125 million budget shortfall and plans involving more than 1,100 job cuts. Scotland Yard warned that delays in deploying technology could force further reductions.



“Without new technology, delivered at pace, we will be forced to make further tough choices that cannot avoid reducing officer numbers, impacting our service to London and our ability to keep the capital safe,” the force said.



The disagreement comes as the UK government encourages wider use of artificial intelligence (AI) in policing. Earlier this year, Shabana Mahmood urged police forces to “ramp up use of AI” and adopt the technology “at pace and scale”.



Palantir defended its work with UK law enforcement agencies, saying its software has supported investigations into domestic abuse, financial crimes and corruption detection within police forces.



“We are proud of that work and stand ready to further support law enforcement across the UK,” a company spokesperson said.



While the current proposal has been blocked, City Hall indicated it is willing to work with the Metropolitan Police on a revised procurement process. Scotland Yard said it would “continue to pursue every avenue to resolve this issue swiftly”.