Coles has moved to cut ties with controversial US data giant Palantir, whose technology is used by the CIA, the Pentagon and American immigration authorities, after months of public pressure over data sharing concerns.

The supermarket confirmed its contract with Palantir will not continue beyond 2027, ending a partnership signed in early 2024.

Palantir, co‑founded by billionaire Peter Thiel, built its business inside the US national security apparatus, supplying battlefield targeting systems, intelligence platforms and tools used in ICE’s deportation operations. The company is valued at about $US330 billion (A$459 billion).

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A Coles spokesperson said the two companies had “agreed to conclude their partnership after three years of collaboration”, adding Palantir’s systems had delivered operational benefits.

“Palantir’s technology has delivered value across Coles’ operations, particularly in rostering, store operations and supply chain planning,” the spokesperson said.

“The technology has helped Coles drive operational efficiencies that ultimately mean we have the products available when customers need them and team members in the right place at the right time to serve our customers.”

Palantir and Coles will part ways after 2027. Credit: AAP

Coles became the first major Australian retailer to sign with Palantir, a move that immediately drew scrutiny from privacy advocates alarmed by the company’s deep ties to US military and intelligence agencies.

Coles’ confirmation follows a campaign launched by activist group GetUp, which claimed the decision as a win.

“We won. The CIA-linked data and surveillance company that had quietly wired its way into 840+ Coles stores across the country will be booted out at the end of its current contract,” GetUp said in an email to signatories.

The campaign gathered more than 85,000 signatures and put digital billboards outside close to 700 stores.

GetUp’s digital billboard campaign. Credit: Supplied

The group had raised concerns that Coles was feeding unprecedented volumes of data into the US intelligence agency-linked platform.

Under the three‑year deal, Coles provided Palantir with access to data covering more than 840 stores, 120,000 staff and 9000 suppliers.

Coles has repeatedly rejected claims the partnership amounted to surveillance, insisting the technology was used for logistics and operational efficiency.

Surveillance technology in Australia has become a key focus in the retail sector in the wake of the Administrative Review Tribunal’s ruling earlier this year that Bunnings could continue using facial recognition to combat theft.

The tribunal did however find the retailer had breached privacy law by failing to properly inform customers.