In Palantir we trust? Regulation of data analysis platforms in public security

Abstract

Organizations increasingly rely on digital technologies to perform tasks. To do so, they have to integrate data banks to make the data usable. We argue that there is a growing, academically underexplored market consisting of data integration and analysis platforms. We explain that, especially in the public sector, the regulatory implications of data integration and analysis must be studied because they affect vulnerable citizens and because it is not just a matter of state agencies overseeing technology companies but also of the state overseeing itself. We propose a platform-theory-based conceptual approach that directs our attention towards the specific characteristics of platforms—such as datafication, modularity, and multilaterality and the associated regulatory challenges. Due to a scarcity of empirical analyses about how public sector platforms are regulated, we undertake an in-depth case study of a data integration and analysis platform operated by Palantir Technologies in the German federal state of Hesse. Our analysis of the regulatory activities and conflicts uncovers many obstacles to effective platform regulation. Drawing on recent initiatives to improve intermediary liability, we ultimately point to additional paths for regulating public sector platforms. Our findings also highlight the importance of political factors in platform regulation-as-a-practice. We conclude that platform regulation in the public sector is not only about technology-specific regulation but also about general mechanisms of democratic control, such as the separation of power, public transparency, and civil rights.