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The EU has sued IBM, Atos and Leonardo over delays and disputes involving its biometric Entry/Exit System for European borders.
The European Union’s border technology agency, EU-Lisa, filed the lawsuit in Estonia in December 2025 after the consortium missed delivery deadlines and disputed financial penalties, according to a Financial Times report. The legal action concerns the development of the Entry/Exit System (EES), which has faced repeated technical problems and rising costs.
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Why Has the EU Taken Legal Action?
The EES was originally scheduled to launch in 2022 but reached full rollout only in 2026. The system requires travellers from outside the Schengen area to register fingerprints and photographs when entering the region. It is intended to help authorities identify visa overstayers and individuals wanted by law enforcement across the 29-country travel area.
Its introduction was disrupted by hardware and software failures, including fingerprint scanners malfunctioning when exposed to sweat. Several European countries were still acquiring scanners, while technical difficulties contributed to lengthy airport queues. EU-Lisa disclosed the lawsuit in its July financial accounts, stating that it had pursued contractual and legal remedies following delivery delays.
How Did the Dispute Escalate?
Internal correspondence reviewed by the Financial Times showed disagreements dating back to October 2021, when Atos Belgium and IBM Belgium challenged financial penalties, citing external factors including the Covid-19 pandemic. In February 2022, the consortium also disputed revised deadlines, describing the timetable as unrealistic and criticising EU-Lisa’s project management.
An IBM representative subsequently agreed that the agency could withhold certain payments pending resolution of the damages dispute. Meanwhile, the contract’s value increased from €142 million to €212 million in 2021. Further delays raised maintenance expenses, prompting EU-Lisa to nearly double its annual EES budget to €40 million in 2023 by reallocating funds from other projects.
What Are the Cybersecurity Concerns?
The project has also faced scrutiny over reports that Atos used its Moscow office to develop software for the European border system. The involvement raised questions about potential security risks associated with the technology’s development.
According to an internal report reviewed by the Financial Times, the EU’s anti-fraud office, Olaf, identified sufficient grounds for further investigation. It indicated that Russian involvement, if established, would constitute a contractual breach. EU-Lisa, however, stated that it had identified no security breaches involving the system.
What Is the Current Status of the Case?
Estonia’s Harju county court confirmed that the civil lawsuit had been filed, although no hearings had taken place or been scheduled. EU-Lisa declined to discuss the proceedings but maintained that the dispute had not affected the functioning of the EES, which it described as fully operational across Europe.
The European Commission similarly stated that the case concerned development delays rather than current operations. Atos and Leonardo declined to comment, while IBM did not respond to a request for comment, according to the report.
The original contract expired in 2025, and a new consortium assumed implementation responsibilities. However, IBM, Atos and Leonardo remained responsible until August, EU-Lisa said. The proceedings now concern contractual accountability for the delays, penalties and additional costs associated with the border technology project.
