MPs Urge UK Government to Halt Palantir Contract for FCA Data Access
Members of Parliament are pressing the UK government to suspend a recent contract with Palantir, following revelations that the US spy-tech company will gain access to highly sensitive financial regulation data from the Financial Conduct Authority. The Liberal Democrats have labeled the deal a "huge error of judgment," while the Green party argues it should be blocked due to Palantir's connections to former US President Donald Trump.
Concerns Over Data Security and Political Links
The FCA, which oversees thousands of financial entities from banks to hedge funds, has engaged Palantir to apply its artificial intelligence systems to two years' worth of internal intelligence data, aiming to combat financial crime more effectively. However, insiders at the FCA have raised alarms about whether adequate safeguards are in place to prevent misuse of the "data lake," with fears that sensitive information on high-profile investigations could be compromised.
Palantir, founded by billionaire Peter Thiel, a known supporter of Donald Trump, has secured over £500 million in UK contracts, including with the NHS, police, and Ministry of Defence. The company's involvement in US military operations and immigration enforcement has sparked criticism, with Green party MP Siân Berry stating, "Companies like Palantir should have no place within UK government systems when they are closely involved in President Trump's illegal wars."
Government Response and Industry Reactions
When questioned in Parliament about potential overreliance on US tech firms like Palantir, Labour leader Keir Starmer acknowledged a preference for domestic capabilities but asserted that the UK is not excessively dependent. Meanwhile, the FCA has emphasized that Palantir will act solely as a "data processor," not a "data controller," meaning it can only operate under direct instructions from the regulator.
The FCA also noted that it will retain exclusive control over encryption keys for the most sensitive files, with all data hosted and stored within the UK. Palantir is required to destroy data after the contract concludes, and any intellectual property derived from the analysis must remain with the FCA. Despite these assurances, Daisy Cooper, the Liberal Democrats' Treasury spokesperson, called for an investigation, warning that awarding such a contract to a "Trump-aligned tech giant" poses significant risks to national and economic security.
Broader Implications and Calls for Action
Martin Wrigley, a Liberal Democrat member of the Commons technology committee, argued that the deal should be "stopped before it's started," expressing concern that it could stifle competition from UK firms. Donald Campbell of Foxglove, a tech fairness campaign group, echoed these sentiments, highlighting the risk of "lock-in" where Palantir becomes deeply embedded in public services, making it difficult to remove later.
In response, Palantir's European boss, Louis Mosley, has been meeting with MPs to address "misconceptions" about the company's technology, denying any intent to misuse customer data. The FCA maintains that the trial involves no trading records and poses no lock-in risk, with a spokesperson stating, "Criminals aren't slow to use technology to cause harm – we need to stay ahead of them." HM Treasury has been approached for further comment on the matter.
