Wouldn’t that also describe every single US tech and defense contractor? The fact it has deep ties to cia is probably seen as a benefit to the leadership of our allies. Maybe their own public sour on that but you can be sure behind closed doors they are in lockstep with the actual aims of our deep state intelligence services.
The thing is that while EU is allied with the US, they are also competitors in many markets.
Airbus is using Palantir services. The competition between Boeing and Airbus has often be brutal and dirty, and considered significant at the state level.
The fact that a company like Palantir be allowed to insert themselves in the software infrastructure of a critical company that is often working against the interest of the US seems very weird to me.