Norwegian Customs extends Palantir contract despite growing scrutiny

The Norwegian Customs “has considered scenarios where US authorities would require Palantir Technologies to hand over the Norwegian Customs’ data,” Jan Erik Ressem, the director of the IT division at Norwegian Customs, told the Barents Observer.

The Norwegian Customs signed a contract with the American tech company Palantir Technologies in 2017. Palantir’s technology has been used to develop a new system, the TREFF-system, designed to streamline databases and add "tools that support processes for analysis, control, and intelligence." This system has been in use since 2021. The Norwegian Customs has since signed a new contract with the company, extending the agreement until 2030, with the option to extend it further to 2035, Filter Nyheter reported.

The use of Palantir technology in the customs system has been heavily scrutinised by organisations such as Amnesty International in Norway. They have called for an end to the contract, citing claims by the British newspaper The Guardian that Palantir’s technology has been used for persecutions by US Immigration and Customs Enforcement (ICE) and by the Israeli Army in Gaza. The Guardian has also referred to Palantir as “the world’s scariest company.”

When asked to comment on criticism and suggestions that “Palantir does not belong in a democratic society,” Palantir told Norwegian broadcaster NRK: “Palantir was established specifically to support democratic institutions, to help them use data more efficiently, while building in protections for privacy and civil liberties.”

The Barents Observer approached the Norwegian Customs for a response to criticism regarding its contract with Palantir. Jan Erik Ressem, director of the IT division, responded:

“The Norwegian Customs is of the opinion that critical scrutiny makes it more, not less, important to be transparent about our cooperation with the company. The transparency is nevertheless sometimes limited because of the confidentiality the agency is subject to through laws, regulations, and binding agreements.”

The Norwegian Customs has also moved their database to Palantir’s cloud service, as revealed by Morgenbladet. This has prompted controversy, as personal data is stored within that service.

Although Ressem acknowledges that “the Norwegian Customs collects and processes personal data about thousands of people,” he assures that “Palantir only provides the software,” whereas “it is the Norwegian Customs that collects the data.”

In terms of access to the data stored in Palantir’s cloud service, the Norwegian Customs uses so-called “encryption keys.” According to Ressem, Palantir does not have access to these keys. “This means that neither Palantir nor the cloud provider has access to the Norwegian Customs’ data,” he says.

As mentioned earlier, the customs “has considered scenarios where US authorities would require Palantir to hand over the Norwegian Customs’ data.” However, Ressem insists that there are “technical, organisational, and legal measures in place” at Palantir that “make such a disclosure unlikely.”

Palantir has gained a foothold throughout Norway, and it looks set to continue. The Norwegian Government Pension Fund Global is the largest direct investor in Palantir in Europe. As first revealed by Morgenbladet, the Norwegian Armed Forces have also met with Palantir to discuss military capabilities and potential contracts. Furthermore, the Norwegian Oil Fund is the largest direct investor by far in Europe, owning 1.22% of Palantir’s shares.

Palantir Technologies has become a well-known name, partly because of its rapid rise in value but also because of controversies surrounding the company and its leaders. The company provides analytical and intelligence software powered by AI. It is used in Ukraine’s defence against Russia, in a war that has become a testing ground for new technologies. Ukrainian President Volodymyr Zelensky met with CEO and co-founder Alex Karp last month to “discuss areas of technological development.”

Karp is a controversial figure. He is the man behind a “manifesto” posted by Palantir on X in April. The manifesto summarises his book The Technological Republic. It argues for the “limits of soft power,” advocating the need to build AI weapons. It also states: “One age of deterrence, the atomic age, is ending, and a new era of deterrence built on AI is set to begin.” In a call with investors, Karp allegedly said that “Palantir is here to disrupt … and, when it’s necessary, to scare our enemies and, on occasion, kill them.”

Karp is well-connected in Norwegian skiing circles, frequently wearing clothing associated with the elite skiing group Team Aker Dæhlie. He also reportedly bought a house in Tromsø earlier this year, adding to his four cabins spread throughout Norway.

Co-founder and chairman Peter Thiel is no less controversial. He has consistently argued that democracy and freedom are incompatible and has claimed that the welfare system creates poverty. He has also made substantial donations to right-wing politicians in the United States and is a key figure in the rise of Vice President JD Vance.

Several European governments have expressed concerns about the ethics of Palantir. Switzerland has rejected Palantir’s bids due to security concerns. Additionally, several countries with existing Palantir contracts, such as Denmark, Switzerland, and the United Kingdom, are now looking for alternatives.

Finally, it is worth noting the origins of the tech company’s name. It is taken from the Palantíri—the seeing stones from J.R.R. Tolkien’s The Lord of the Rings. The stones were used for surveillance and predicting the future. They promised foresight but ultimately led to the ruin of those who used them.