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European Union sues IBM and two European companies over troubled border system: Report

Synopsis

The European Union has initiated legal proceedings against IBM, Atos, and Leonardo for delays in the Entry/Exit System. EU-Lisa reported these delays occurred during the system's development, not affecting its operation. The consortium was awarded a contract in 2019 for implementation and maintenance. In a letter from October 2021, the companies contested a fine imposed on them. They cited external factors like the COVID-19 pandemic as reasons for the delays.

FILE PHOTO: The IBM logo is displayed during the 56th annual World Economic Forum (WEF) meeting, in Davos, Switzerland, January 20, 2026.Reuters
The IBM logo is displayed during the 56th annual World Economic Forum (WEF) meeting, in Davos, Switzerland.
The European Union has sued IBM, French IT group Atos and Italian defence contractor Leonardo over repeated delays in developing its new smart border system, the Financial Times reported on Monday, citing internal communications.

EU-Lisa, the agency responsible for the operational management of large-scale IT systems in the area has sued the firms, according to the newspaper.

The Entry/Exit System electronically records the entry and exit of non-EU nationals at the bloc's external borders. The system applies across the 29 countries in the Schengen area and is designed to identify visa overstayers, combat identity fraud and curb illegal migration.


Read more: EU Commission proposes five major cross-border defence projects

EU-Lisa told the FT that the legal proceedings had "no impact on the functioning of the Entry/Exit System (EES)," adding that the dispute relates to delays in the delivery of the EES at the time of the system development and is not related to the operation of the EES.

Reuters could not immediately verify the report. IBM, Leonardo, Atos, and EU-LISA did not immediately respond to a request for comment sent outside regular business hours.

Read more: EU members approve five big pan-European defence projects

In 2019, the EU agency awarded a core EES contract to a consortium including IBM Belgium, Atos Belgium and Leonardo. The six-year contract covered implementation and maintenance of the central Entry/Exit System.

In an October 2021 letter seen by FT, Atos Belgium and IBM Belgium contested "both the principle ... and the calculation" of a fine imposed by the agency, arguing that delays stemmed from external factors, including the COVID-19 pandemic.

A few months later, in February 2022, the three companies pushed back against new deadlines set by EU-Lisa.

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