EU Takes IBM, Atos and Leonardo to Court Over Years of Delays in Border Control System

The European Union has taken Technology companies IBM, Atos and Leonardo to court over repeated delays in developing its new digital border control system, known as the Entry/Exit System (EES). The legal proceedings were initiated by eu-LISA, the EU agency responsible for managing large-scale information technology systems in the bloc.

The dispute concerns delays during the development and delivery of the EES, which is designed to electronically record the entry and exit of non-EU nationals travelling across the Schengen area’s external borders. The system aims to improve border management, identify visa overstayers and help prevent identity fraud.

According to a Financial Times report citing internal communications, the legal action follows years of disagreements between the agency and the companies involved in building the system. However, eu-LISA has clarified that the proceedings will not affect the system’s current operations.

Key Highlights

• EU agency eu-LISA has taken IBM, Atos and Leonardo to court over delays in developing the Entry/Exit System.
• The EES electronically records the entry and exit of non-EU nationals at the EU’s external borders.
• The system applies across the 29 countries in the Schengen area.
• The companies received a core EES contract in 2019 covering implementation and maintenance.
• eu-LISA says the legal dispute will not affect the system’s current functioning.

Why Has the EU Taken IBM, Atos and Leonardo to Court?

The legal dispute centres on repeated delays in delivering the Entry/Exit System. The project was awarded to a consortium involving IBM Belgium, Atos Belgium and Leonardo in 2019.

The six-year contract covered the implementation and maintenance of the central EES infrastructure. However, disagreements emerged over project delays, contractual responsibilities, financial penalties and revised delivery deadlines.

According to the Financial Times, eu-LISA initiated legal proceedings against the three companies over the delays. The dispute highlights the challenges involved in delivering large-scale digital infrastructure projects that require coordination between government agencies and multiple technology contractors.

Reuters said it could not immediately independently verify the Financial Times report. IBM, Atos, Leonardo and eu-LISA did not immediately respond to Reuters’ requests for comment sent outside regular business hours.

What Is the European Union’s Entry/Exit System?

The Entry/Exit System is a digital border management platform designed to electronically register when non-EU nationals enter or leave the Schengen area.

Instead of relying only on traditional passport stamps, the system records relevant travel information electronically. It is intended to help authorities monitor the movement of visitors entering the Schengen area for short stays.

The system covers 29 countries in the Schengen area and is designed to support border authorities in identifying people who remain beyond their permitted period of stay.

Key Objectives of the EES

• Identify visa overstayers: Electronic records can help authorities determine whether visitors have exceeded their permitted stay.
• Combat identity fraud: Digital records are intended to make it more difficult to use fraudulent identities when crossing external borders.
• Improve border management: Electronic registration can provide authorities with more consistent information about non-EU travellers.
• Support migration controls: The system is designed to help authorities monitor entry and exit movements and address irregular migration.

How the Dispute Between eu-LISA and the Companies Developed

The disagreements between eu-LISA and the technology consortium date back several years. In October 2021, Atos Belgium and IBM Belgium challenged a fine imposed by the agency.

In a letter seen by the Financial Times, the companies contested both the principle behind the penalty and the way it had been calculated. They argued that the project delays were partly caused by external circumstances, including the COVID-19 pandemic.

The disagreement continued into 2022. In February that year, the three companies pushed back against new deadlines established by eu-LISA.

These disagreements over deadlines and responsibility for delays eventually became part of the wider legal dispute. The available information does not specify the total amount of penalties involved or the compensation being sought through the court proceedings.

Will the Legal Case Affect the Current Border Control System?

eu-LISA has said that the legal proceedings will not affect the functioning of the Entry/Exit System.

The agency told the Financial Times that the dispute concerns delays in delivering the system during its development phase. It also clarified that the legal proceedings are not related to the system’s current operation.

This distinction is important because the case concerns contractual and project-delivery issues rather than an announced suspension of the border control platform.

For travellers, the agency’s statement indicates that the legal dispute is separate from the system’s operational functioning. However, any future changes to the system’s operation would depend on official announcements from the relevant European authorities.

What the Case Means for IBM, Atos and Leonardo

The case puts the three companies under legal scrutiny over their roles in delivering a major European public-sector technology project.

Large-scale government IT contracts often involve complex technical requirements, strict delivery schedules and coordination between different contractors. Delays can create disagreements over responsibility, additional costs and contractual penalties.

For IBM, Atos and Leonardo, the proceedings could involve further examination of their contractual obligations and the reasons behind the project’s delayed development. The companies’ positions on the dispute will be important in determining how the case develops.

At present, the reported legal action should not be interpreted as a final finding of liability against any of the three firms. The court proceedings will determine the relevant contractual and legal issues.

Why the EES Project Is Important for Europe’s Borders

The Entry/Exit System is part of the European Union’s broader effort to modernise border management through digital infrastructure. By replacing certain manual processes with electronic records, the bloc aims to improve the monitoring of non-EU travellers entering and leaving the Schengen area.

Its successful operation depends on reliable technology, secure information systems and coordination among participating countries. Any major delay in developing the central infrastructure can create challenges for the wider border management programme.

The dispute also highlights the risks associated with complex public-sector technology projects. Governments and agencies must balance ambitious digital transformation plans with realistic delivery schedules, clear contractual responsibilities and effective oversight of contractors.

Conclusion

The EU’s legal action against IBM, Atos and Leonardo marks a significant development in the long-running dispute over delays in delivering the Entry/Exit System. The disagreement dates back to the project’s development phase and includes disputes over penalties, external factors and revised deadlines.

While the case raises questions about accountability in major public technology contracts, eu-LISA has maintained that the proceedings will not affect the EES’s current operations. The legal process will now address the disagreements surrounding the project’s delivery, while the digital border system continues to serve its intended role across the Schengen area.