The Spanish government has reportedly begun telling state-backed firms to avoid signing new contacts with US billionaire Peter Thiel’s company.
It comes amid fears that sensitive national security information could be leaked, according to Spanish publication El Confidencial.
Board members of several publicly listed companies told the newspaper they have been ordered to avoid signing any contracts with the data firm that could jeopardise national sovereignty or strategic information.
Moncloa, Spain’s official government website, has not issued any official announcement about banning Palantir outright.
But sources told El Confidencial that public and private companies controlled by SEPI, the country’s sovereign wealth fund and state-owned industrial holding company, have been told to blacklist the data firm.
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Businesses in critical communications, defence, military technology and public infrastructure are said to be the most impacted.
But Spain’s Ministry of Defence is reportedly still in discussions with Palantir about renewing and expanding its existing contracts.
Its Armed Forces Intelligence Centre (CIFAS), which reports to the Ministry of Defence, signed a deal with the firm in 2023 for €16.5 million and it expires next November.
Palantir’s list of customers includes the Israeli military and the US Immigration and Customs Enforcement (ICE).
Britain also has contracts with the company to provide data analytics within the Ministry of Defence and the NHS, but it is now under pressure to curb the awarding of any more deals.
Critics say Palantir’s widening reach across the UK’s public services is a cause for concern. MPs have warned its use in the UK could weaken the country.
The Commons Science, Innovation and Technology Committee said reliance on a small number of US-based providers represents a “clear vulnerability”.
A statement read: “Our view that Palantir’s increasing presence across the public sector represents an unacceptable point of weakness is not ideologically motivated or driven by concerns about the quality of their products.“
Last month, London Mayor Sadiq Khan blocked a £50m deal between the Metropolitan Police and Palantir, warning it represented a “clear and serious breach” of procurement rules.
Scotland Yard wanted to use Palantir’s AI tech to automate intelligence on criminal investigations.
Ideologically, concerns have been raised over Palantir’s ties to Israel and the Trump administration as well its chief executive writing that “some cultures are superior.“
Concerns also escalated after Palantir announced plans in September for a £1.5 billion investment to establish the UK as its European headquarters for defence, creating 350 “high-skilled” jobs.
It has also been reported that disgraced US ambassador Lord Mandelson attempted to organise a meeting between Palantir and Sir Keir Starmer.
Palantir was co-founded by billionaire tech entrepreneur Peter Thiel, an early backer of US president Donald Trump who has worked with the US government.
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