Spain instructs state-backed companies to avoid new Palantir contracts

Spain just told Palantir to pack its bags. Or at least, to stop unpacking new ones.

On July 1, the Spanish government issued a directive through SEPI, the state holding company that oversees the country’s publicly owned enterprises, instructing its portfolio companies to avoid entering new contracts with Palantir Technologies. The reason: concerns over classified national security information and what officials see as risks to national sovereignty.

The directive targets firms operating in defense, communications, and infrastructure. We’re talking about heavyweights like Telefónica, defense contractor Indra, and naval shipbuilder Navantia.

What’s actually happening

Here’s the thing: this isn’t technically a ban. It’s not legislation. It’s not even a formal regulation.