A cross-party group of British lawmakers has warned that US technology company Palantir Technologies, which has contracts in Israel, has gained an outsized role in the UK public sector, creating what it described as an “unacceptable point of weakness” in the country’s digital infrastructure.
In a report released on Wednesday, the House of Commons Science, Innovation and Technology Committee said increasing dependence on a small group of major technology suppliers — including Palantir Technologies, Microsoft and Amazon Web Services — could leave essential public services vulnerable while undermining Britain's technological sovereignty.
The committee urged the government to activate a break clause in the National Health Service's Federated Data Platform contract with Palantir in 2027 and either build an in-house alternative or switch to a UK-based provider.
Calls grow for greater UK tech independence
The warning comes amid broader concerns over the role of foreign technology firms in critical public infrastructure.
Earlier this year, London Mayor Sadiq Khan blocked a proposed Metropolitan Police contract with Palantir worth more than $67 million after officials raised concerns that the procurement process could lock the force into a single supplier.
City Hall said the proposed deal created legal and reputational risks and failed to adequately demonstrate value for money, adding to growing scrutiny of Palantir’s expanding footprint in Britain.
The committee said the government should reduce reliance on a narrow group of global technology providers and strengthen domestic capabilities to ensure greater resilience and control over sensitive public-sector data.
Palantir’s Israel ties
Palantir has faced criticism from observers over its business ties and statements related to Israel.
The company has signed strategic partnerships with Israeli government agencies and expanded its work with the country’s defence and security institutions.
CEO Alex Karp has publicly defended Israel and criticised parts of the Western tech sector for what he sees as insufficient support for the country.
In early 2024, Palantir announced a strategic partnership with Israel's Defence Ministry and held board meetings in Israel as a show of solidarity amid Israel’s genocidal war on Gaza.
