The European Union has filed a lawsuit against IBM and two other companies involved in its troubled border-management system, according to an internal document seen by the Guardian.
The bloc's IT agency, EU-Lisa, filed a case last year against IBM, the French IT company Atos and Italian defence contractor Leonardo, the three members of a consortium to implement and maintain the EU's entry/exit system (EES), which was launched in October 2025.
The rollout has faced significant difficulties, with some passengers at peak times missing their flights as a result of delays blamed on the new technology and a lack of staff at the border.
The agency's decision to sue the companies was revealed in its latest annual accounts, which stated that "following the various delays in the delivery of the EES by a contracting consortium the agency activated the available contractual and legal remedies to protect its financial interest".
EU-Lisa said a claim had been submitted on 22 December 2025 to a court in Estonia, where it has its headquarters. The agency has been contacted for comment. The Guardian has contacted IBM, Leonardo and Atos for comment.
Since its launch the system has been beset by problems. Airports have complained of malfunctioning EES kiosks to regular outages of the system, which have led to waiting times of three hours at peak periods.
The lawsuit was first reported by the Financial Times, which quoted the agency as saying it had no comment on the legal case and noting it had "no impact on the functioning of the Entry/Exit System (EES), which is fully operational across Europe".
The European Commission said it was not a party to the case, while noting it concerned "delays in the delivery of the EES at the time of system development" and was "not related to the operation of the EES".
The system increased security checks on passengers travelling into the EU from outside its border-free travel zone. Travellers' faces have to be photographed and fingerprints scanned before they are allowed into the Schengen area, which comprises 25 of the 27 EU member states as well as Iceland, Liechtenstein, Norway and Switzerland. The checks apply to people who are not citizens of one of the 29 Schengen countries, Ireland or Cyprus.
The system is managed by EU-Lisa, the bloc's agency for large-scale IT systems in the domain of justice and security.
Analysis
Why This Matters
- The lawsuit highlights significant failures in a major EU technology project that directly affects millions of travellers entering Europe.
- The problems have caused real disruption, with passengers missing flights and facing three-hour queues at peak times.
- The legal action could set a precedent for how the EU holds contractors accountable for delays in large-scale IT systems.
Background
The EU's entry/exit system (EES) was launched in October 2025 to increase security checks on travellers entering the EU from outside its border-free Schengen area. It requires facial photographs and fingerprints from non-citizens of Schengen countries, Ireland and Cyprus. The system is run by EU-Lisa, the bloc's agency for large-scale IT systems in justice and security. The consortium of IBM, Atos and Leonardo was contracted to implement and maintain the system, but its rollout faced delays and operational problems including malfunctioning kiosks and system outages.
Key Perspectives
EU-Lisa: Filed the lawsuit to "protect its financial interest" following delays, and said the legal case has "no impact on the functioning of the Entry/Exit System (EES), which is fully operational across Europe".
European Commission: Noted it was not a party to the case, which concerned "delays in the delivery of the EES at the time of system development" and was "not related to the operation of the EES".
IBM, Atos, Leonardo: Have been contacted for comment but have not yet responded publicly to the lawsuit.
What to Watch
- The outcome of the court case in Estonia, which will determine whether the consortium is liable for damages.
- Whether the operational problems at airports (malfunctioning kiosks, outages) continue or are resolved.
- Potential changes to EU procurement and contracting rules for large IT projects if the delays are found to be the contractors' fault.
Checked
11 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedThe EU is suing IBM and two European firms over its troubled entry/exit border system.World news | The Guardian: “EU sues IBM and two European firms over troubled entry/exit border system.”
- SupportedThe bloc’s IT agency filed a lawsuit over delays in delivering the entry/exit system.World news | The Guardian: “EU-Lisa, filed a case last year against IBM, the French IT company Atos and Italian defence contractor Leonardo”
- Partly supportedThe lawsuit was reported as being based on an internal document seen by the Guardian.World news | The Guardian: “The EU has filed a lawsuit against IBM and two other companies involved in its troubled border-management system, an internal document has revealed.”
- SupportedSome passengers at peak times missed flights because of delays blamed on new technology and a lack of border staff.World news | The Guardian: “some passengers at peak times have missed their flights as a result of delays blamed on the new technology and a lack of staff at the border.”
- SupportedWaiting times reached three hours at peak periods.World news | The Guardian: “which have led to waiting times of three hours at peak periods.”
- SupportedThe agency’s annual accounts said it had activated contractual and legal remedies to protect its financial interest after delays in delivery.World news | The Guardian: “following the various delays in the delivery of the EES by a contracting consortium the agency activated the available contractual and legal remedies to protect its financial interest”
- SupportedEU-Lisa said it submitted a claim to a court in Estonia on 22 December 2025.World news | The Guardian: “EU-Lisa said a claim had been submitted on 22 December 2025 to a court in Estonia, where it has its headquarters.”
- SupportedThe system launched in October 2025.World news | The Guardian: “the EU’s entry/exit system , which was launched in October 2025.”
- SupportedThe Financial Times reported the lawsuit and quoted the agency as saying it had no comment on the case and that the case had no impact on system operations.World news | The Guardian: “The lawsuit was first reported by the Financial Times, which quoted the agency as saying it had no comment on the legal case and noting it had “no impact on the functioning of the Entry/Exit System (EES), which is fully operational across Europe”.”
- SupportedThe Schengen area comprises 25 of the 27 EU member states, plus Iceland, Liechtenstein, Norway and Switzerland.World news | The Guardian: “the Schengen area, which comprises 25 of the 27 EU member states as well as Iceland, Liechtenstein, Norway and Switzerland.”
- SupportedThe checks apply to people who are not citizens of one of the 29 Schengen countries, Ireland or Cyprus.World news | The Guardian: “The checks apply to people who are not citizens of one of the 29 Schengen countries, Ireland or Cyprus.”