The European Union has launched legal proceedings against IBM, French IT group Atos and Italian defence contractor Leonardo over repeated delays in delivering a major digital border management system, according to a Financial Times report published on Monday.
The case involves the European Entry/Exit System (EES), a technology platform designed to modernise border controls by electronically recording the movements of non-EU nationals entering and leaving the Schengen Area.
According to the report, the legal action was initiated by eu-LISA, the EU agency responsible for managing large-scale information technology systems supporting border security and migration management.
The dispute centres on delays during the development and delivery of the system, which 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.
Disagreement Over Project Deadlines
The companies and the EU agency reportedly disagreed over project delays, financial penalties and revised delivery schedules.
In an October 2021 letter cited by the Financial Times, Atos Belgium and IBM Belgium challenged a fine imposed by eu-LISA, disputing both the basis for the penalty and how it was calculated.
The companies argued that external circumstances, including the COVID-19 pandemic, contributed to the delays.
In February 2022, the three contractors also reportedly objected to new deadlines proposed by the agency, highlighting the difficulties surrounding the project’s implementation.
What the Border System Is Designed to Do
The Entry/Exit System is intended to strengthen border management across the 29 countries in the Schengen Area.
Rather than relying entirely on traditional passport stamps, the platform electronically records the entry and departure of non-EU travellers, including biometric information such as fingerprints and facial images.
Its objectives include identifying people who overstay their permitted period, reducing identity fraud and supporting efforts to manage irregular migration.
Legal Dispute Does Not Affect Current Operations
Despite the legal proceedings, eu-LISA told the Financial Times that the dispute would not affect the functioning of the Entry/Exit System.
The agency explained that the case concerns delays experienced during the system’s development and delivery, rather than its current operation.
Reuters said it could not independently verify the Financial Times report. IBM, Atos, Leonardo and eu-LISA had not immediately responded to requests for comment sent outside regular business hours.
The dispute highlights the contractual and technical challenges involved in delivering large-scale public digital infrastructure, particularly projects that require coordination between government agencies and international technology providers.
It also places renewed attention on accountability, project timelines and risk management in major government technology contracts.
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