EU Sues IBM Over Delayed EES Border System Plagued With Issues

The EU agency that oversees Europe’s new biometric border system has sued IBM, Atos and Leonardo over repeated delays in delivering it.

The system’s rollout came years behind schedule, and software and hardware failures left travelers queuing for hours at European airports this summer.

EU-Lisa disclosed in its annual accounts that it filed the civil suit in Estonia, where the agency is based, in December 2025, according to the Financial Times.

The Harju County Court confirmed the filing and said it had yet to hold or schedule a hearing.

EU-Lisa said it had pursued remedies “to protect its financial interests.”

The European Commission said the case concerns delays during development.

EU-Lisa said the Entry/Exit System was fully operational across Europe, although some EU countries were still acquiring fingerprint scanners, the FT reported.

French IT group Atos and Italian defense contractor Leonardo declined to comment on the proceedings. IBM did not respond to the FT’s request for comment.

Deadlines and Costs

Correspondence reviewed by the FT shows the contractors had been disputing deadlines and penalties for years.

In October 2021, the Belgian units of Atos and IBM challenged a fine, arguing that factors outside their control, including the Covid-19 pandemic, had held up the work.

In February 2022, all three contractors challenged a revised timetable and criticized the agency’s oversight of the project.

The following month, an IBM representative agreed that EU-Lisa could withhold certain payments until the dispute over damages was resolved.

The contract value rose from €142 million to €212 million in 2021.

EU-Lisa later said the delays had pushed back other IT projects and raised maintenance costs.

In 2023, it shifted funds from other projects, nearly doubling that year’s border-system budget to €40 million.

Disruption at Airports

Originally scheduled to launch in 2022, the system was fully rolled out this year.

It requires travelers from outside the EU to provide fingerprints and a facial image when first entering the 29-country Schengen area.

The checks are intended to identify people who overstay their visas or are wanted by authorities.

Among the faults that slowed checks were fingerprint scanners that malfunctioned when sweat smeared their surfaces.

The original consortium remained in charge until August, according to EU-Lisa. A new group of contractors took over implementation.

The project also drew scrutiny after the FT reported that Atos used its Moscow office to procure software for the system.

The EU’s anti-fraud office said the alleged Russian involvement would breach the contract if confirmed and referred the matter to EU-Lisa.

The agency said it had identified no security breaches.