European Union Suing IBM, Atos, Leonardo Over Border System Delays
The EU's border technology agency, EU-Lisa, has sued IBM, Atos and Leonardo in Estonia over years of delays to the Entry/Exit System. The agency says the case does not affect the system's operation, which began full rollout this year after a planned 2022 launch.
The European Union's border technology agency, EU-Lisa, has sued IBM, Atos and Leonardo over repeated delays to the Entry/Exit System (EES), according to a report citing internal communications. The European Union suing IBM and its two partners centers on a lawsuit filed in Estonia in December 2025.
EU-Lisa says the biometric border system, which was due to launch in 2022, reached full rollout only this year. Atos is France's biggest IT company, and Leonardo is based in Italy.
The agency filed the case after the consortium missed delivery deadlines and challenged warnings and financial penalties, the report said. Estonia's Harju county court confirmed that the civil case had been filed. No hearings have taken place or been scheduled.
What the system does
The EES requires travelers from outside the bloc to register fingerprints and photographs when they first enter the Schengen area. It is designed to help authorities identify visa overstayers and people wanted by law enforcement. The passport-free zone covers 29 European countries, most of them EU members.
Its introduction has been marked by technical problems and hours-long airport queues across Europe during the summer. Fingerprint scanners have malfunctioned when covered in sweat. Some EU countries are still acquiring scanners.
Years of disputes
EU-Lisa disclosed the lawsuit in annual accounts published in July. It said it had pursued contractual and legal remedies after delivery delays, to protect its financial interests.
Correspondence reviewed shows disagreements over schedules and penalties going back several years. In October 2021, Atos Belgium and IBM Belgium challenged the basis and calculation of a fine. They argued that outside factors, including the Covid-19 pandemic, had caused delays.
In February 2022, the three companies objected to revised deadlines. They called the timetable unrealistic and criticized EU-Lisa's governance of the project. The consortium reportedly wrote: "Ignoring reality is not prudent and will not help to achieve the plan."
A month later, an IBM representative agreed that EU-Lisa could withhold some payments while the damages dispute was resolved. The contract's total value had already risen from €142 million to €212 million in 2021. In 2023, EU-Lisa nearly doubled its annual EES budget to €40 million by moving money from other projects, according to accounts cited in the report.
The original contract expired in 2025 and a new consortium took over implementation. IBM, Atos and Leonardo remained responsible until August, EU-Lisa said.
Security questions
The project has also faced questions about cybersecurity. Atos had previously been reported to have used its Moscow office to procure software for the border system. EU-Lisa said it had identified no security breaches.
An internal report reviewed said the EU's anti-fraud office, Olaf, found sufficient grounds for further investigation. It said Russian involvement, if established, would breach the contract.
EU-Lisa declined to discuss the proceedings. It said the case had "no impact on the functioning" of the EES, which it described as fully operational across Europe. The European Commission said the dispute concerned development delays, not the system's operation.
Atos and Leonardo declined to comment on the legal proceedings. IBM did not respond to a request for comment.
