Germany’s armed forces currently have no plans to award contracts to U.S. data analytics firm Palantir Technologies. Thomas Daum, head of German military cyber defense, confirmed the stance to Handelsblatt and Reuters. Daum stated he does not see any contract awards occurring at this time.

The decision marks a potential setback for Palantir’s expansion into the European defense market. Germany represents a significant potential customer for the company’s data analysis software. This development creates uncertainty regarding a primary international growth channel.