The European Union’s border technology agency has sued IBM, France’s biggest IT company Atos and Italy’s Leonardo over repeated delays in developing its Entry/Exit System (EES). According to a report in the Financial Times, citing internal communications, EU-Lisa, which oversees the system, filed the lawsuit in Estonia in December 2025 after the consortium missed delivery deadlines and challenged warnings and financial penalties, according to the report.The biometric border system was originally due to launch in 2022 but reached full rollout only this year. Its introduction has been marked by technical problems and hours-long airport queues across Europe during the summer.
Project derailed by hardware and software glitches
The EES requires travellers from outside the bloc to register fingerprints and photographs when first entering the Schengen area. It is designed to help authorities identify visa overstayers and people wanted by law enforcement. The passport-free travel area covers 29 European countries, most of them European Union ((EU) members.Software and hardware failures have disrupted its introduction, including fingerprint scanners malfunctioning when covered in sweat. Some EU countries are still acquiring scanners, the FT reported. EU-Lisa disclosed the lawsuit in annual accounts published in July, saying that it had pursued contractual and legal remedies following delivery delays to protect its financial interests.Estonia’s Harju county court confirmed that the civil case had been filed. No hearings had taken place or been scheduled, according to the newspaper. EU-Lisa declined to discuss the proceedings but said the case had “no impact on the functioning” of the EES, which it described as fully operational across Europe. The European Commission also said the dispute concerned development delays rather than the system’s operation.Atos and Leonardo declined to comment on the legal proceedings, while IBM did not respond to a request for comment, the FT reported.
IBM and Atos tell EU: You cannot forget Covid-19
Correspondence reviewed by the FT shows that disagreements over delivery schedules and penalties stretch back several years. In October 2021, Atos Belgium and IBM Belgium challenged both the basis and calculation of a fine, arguing that external factors, including the Covid-19 pandemic, had caused delays.The three companies subsequently objected to revised deadlines in February 2022, arguing that the timetable was unrealistic and criticising EU-Lisa’s governance of the project. “Ignoring reality is not prudent and will not help to achieve the plan,” the consortium reportedly wrote.A month later, an IBM representative agreed that EU-Lisa could withhold some payments pending resolution of the damages dispute. The agency’s 2022 accounts acknowledged difficulties with the consortium and said it was assessing additional costs arising from delays, which had also affected other IT projects. The contract’s total value had already increased from €142 million to €212 million in 2021.Further delays raised hardware and software maintenance expenses. In 2023, EU-Lisa nearly doubled its annual EES budget to €40 million by moving money from other projects, according to accounts cited by the FT.The original contract expired in 2025, and a new consortium took over implementation. IBM, Atos and Leonardo nevertheless remained responsible until August, EU-Lisa said.
What is fear over ‘Moscow Files’
The project has also faced questions about cybersecurity. It was previously reported that Atos had used its Moscow office to procure software for the border system. EU-Lisa said it had identified no security breaches. According to an internal report reviewed by the newspaper, the EU’s anti-fraud office, Olaf, found sufficient grounds for further investigation and said Russian involvement, if established, would breach the contract.
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