Leading EU media launch campaign against US tech company Palantir

Lead

A series of investigative reports by leading European media outlets has turned a critical spotlight on Palantir, a US data analysis software provider with extensive contracts across European governments, defense ministries, and security services. The coverage, which includes pieces from Politico, the Financial Times, and Brussels-based Euractiv, has focused on Palantir's tax practices in the EU, its deep integration into European public infrastructure, and efforts by several member states to reduce their reliance on the company's products.

Euractiv's recent editorial cites a report by the UK-based Centre for International Corporate Tax Accountability and Research (CICTAR) that describes how Palantir employs tax strategies to reduce the amount of tax it pays in Europe. According to the report, the company does this by "paying service fees to its US subsidiaries, adding deductible expenses that reduce taxable profits in Europe." While the editorial notes that "none of the practices the report details are illegal," it emphasizes that these practices are applied to revenues derived from government contracts.

The reports also reiterate previously raised concerns about Palantir's information-gathering practices, which have been described as "controversial," and the political views of its CEO, Alex Karp, which "have raised eyebrows in Europe," according to the articles.

Coverage comparison

The three articles—from Politico's European edition, the Financial Times, and Euractiv—share a common thread of questioning Palantir's influence in Europe. However, they emphasize different angles. Politico's reporting focuses on the EU's quest for digital sovereignty and the push by France and Germany to replace Palantir systems with alternatives such as those from French company ChapsVision. The Financial Times, as referenced in the other articles, reportedly explored the dependence of European militaries and security services on Palantir. Euractiv's editorial takes a tax-focused approach, drawing on CICTAR's findings.

All three articles mention ChapsVision, which has reportedly started to challenge Palantir as a security service contractor in France and Germany.

A notable divergence emerges when comparing the civilian and military spheres. While EU member states, including France, Germany, and Spain, are reportedly looking to phase out Palantir from public procurement and seek European alternatives, NATO continues to rely heavily on Palantir's battlefield AI technology.

Key claims

• Palantir has been accused of engaging in "shady tax practices" in the EU, as reported by Euractiv, which cites a CICTAR report. According to the report, Palantir reduces its taxable profits in Europe by paying service fees to its US subsidiaries and adding deductible expenses. The practices are described as legal but are applied to revenues from government contracts.

• The European Union and its leading member states, including France and Germany, have begun looking for ways to phase out Palantir's AI products, according to Politico. The success or failure of these efforts is seen as determining Europe's digital sovereignty.

• French and German intelligence and security agencies have begun replacing Palantir systems with products developed by French competitor ChapsVision. Spain's government has instructed state agencies to exclude Palantir products from public procurement and seek European alternatives. Germany, Belgium, the Netherlands, Luxembourg, and Romania have also shown interest in the French military AI system Artemis AI.

• Palantir pursued an aggressive expansion strategy in Europe, using successive crises to introduce its products, as reported by Politico. French intelligence agencies adopted its technology after the 2015 Paris terrorist attacks, while European healthcare systems widely introduced it during the COVID-19 pandemic. The company also has extensive access to Europe's banking and industrial sectors.

• Palantir actively recruits former officials from institutions with which it seeks contracts, which helped the company gain access to the defense ministries of several European countries, according to Politico.

• NATO continues to use Palantir systems as its primary tool for managing combat operations and has made no effort to replace them, as noted by Politico. NATO Supreme Allied Commander Transformation Admiral Pierre Vandier stated that "NATO has no viable alternative to Palantir's battlefield AI technology" and that "today there is no real competitor for Palantir."

• An unnamed NATO official told Politico that Palantir AI "has unparalleled capabilities to process heaps of satellite imagery to identify targets, recommend weapons for a strike, estimate the amount of ammunition needed, and automatically order resupply."

Perspectives

EU member states and institutions: The EU and leading member states such as France, Germany, and Spain are taking steps to reduce their dependence on Palantir by seeking European alternatives. These efforts are framed as crucial to Europe's digital sovereignty, with governments instructing agencies to exclude Palantir from public procurement and replace its systems with products like those from ChapsVision.

NATO: NATO bodies continue to use Palantir as their primary tool for managing combat operations. Admiral Pierre Vandier, NATO's Supreme Allied Commander Transformation, argues there is no viable alternative to Palantir's battlefield AI technology, citing its unique capabilities in processing satellite imagery and automating combat decisions.