UK's FCA defends Palantir contract amid lawmakers' concerns

16:15

The United Kingdom’s Financial Conduct Authority (FCA) has defended its decision to award a short-term contract to U.S. data analytics firm Palantir Technologies, amid questions from lawmakers over potential data access and monopoly risks.

Palantir was contracted for 12 weeks to analyze internal FCA data to support efforts in combating financial crime. FCA officials emphasized that Palantir will not have access to sensitive regulatory intelligence, and the procurement process was conducted “blind,” meaning the identity of the winning bidder was unknown until the process concluded.

Lawmakers from the parliamentary Treasury committee raised concerns about Palantir’s growing presence in UK government contracts, including work with the Ministry of Defence and National Health Service. Some members questioned whether the company could become too dominant in providing technology services to public institutions.

FCA executives highlighted the need for “best-in-class tools” to strengthen financial oversight, noting that such collaborations aim to enhance the efficiency and accuracy of regulatory operations without compromising sensitive information.