* Panel applies OECD, UN Charter and European rules

* Panel includes former diplomats and security officials

* OECD-country projects can still face review if risky

By Leo Marchandon

PARIS, June 18 (Reuters) - French software group ChapsVision

said on Thursday its independent ethics committee can block

contracts where its software could be misused, underscoring how

oversight has become central as Europe seeks local alternatives

to U.S. data analytics providers.

ChapsVision President Silvano Sansoni told Reuters at

VivaTech that the panel can stop work on any project, with

reviews based on Organisation for Economic Co-operation and

Development transparency indicators, the United Nations Charter

and European rules.

"They have a right of veto," Sansoni said, referring to the

ethics committee. "They can tell me: 'No, Silvano, you are not

allowed to go there,'" if a country or project raises concerns.

The committee can also halt ongoing contracts if the scope or

clients' requests change, Sansoni added.

The oversight carries weight because ChapsVision sells tools

that process sensitive data for governments and companies, where

questions over privacy, civil liberties and accountability are

acute.

ChapsVision is pitching ArgonOS as a European platform for

intelligence and decision-making.

The company has positioned itself as an alternative to

U.S.-based Palantir Technologies ( PLTR ), which has faced

criticism from rights groups and activists over work in areas

including immigration, health and security, raising concerns

about surveillance, use of personal data and reliance on a

politically divisive contractor.

In Britain, the government is reviewing Palantir's ( PLTR ) National

Health Service contract under pressure to use a break clause in

early 2027.

ChapsVision has won government contracts in France and

Germany. Sansoni said a French government project awarded in

2024 was already operating before the wider platform

announcement. Deployment is set to take 18 to 24 months across

several ministries handling sensitive data, while France's

two-year renewal with Palantir ( PLTR ) serves as a transition.

"The ambition is global," the company said. ChapsVision said

it mainly works with France's intelligence agency under the

contract, while the armed forces are eligible but ArgonOS has

not yet been deployed there.

Sansoni said the company keeps a confidential list of

countries that must be referred to the committee, while some

cases involving OECD countries can also be escalated if the

intended use raises risks.

The ethics committee, chaired by Jean-David Levitte, a

former French ambassador to the U.S. and the U.N., includes

members such as Francis Delon, a former senior national security

official, and Claude Revel, a veteran of French government

economic intelligence. Former Spanish foreign minister Ana

Palacio is slated to join the panel this summer, Sansoni said.