The European Union's border IT agency has sued IBM, French IT group Atos and Italian defence contractor Leonardo over repeated delays in developing the bloc's new smart border system, Reuters reported on Monday, November 9, citing a Financial Times report based on internal communications. The agency, eu-LISA, confirmed the proceedings on Monday and said they concern delays during the system's development — not how the system works today.

Source: Reuters, Nov 9 2026 — EU sues IBM and two European companies over troubled border system, FT reports

The case itself is not new: eu-LISA filed its claim in Estonia, where the agency is headquartered, in December 2025, according to the reporting published on Monday. What changed this week is that the lawsuit has come to light publicly, with the agency confirming on the record that it has 'activated the available contractual and legal remedies to protect its financial interests.' No hearing date has been set and the amount being claimed has not been disclosed in the reporting.

Source: Techopia, Nov 9 2026 — EU border system contractors face Estonian lawsuit

The system that fingerprints every non-EU traveller

The Entry/Exit System (EES) electronically records the entry and exit of non-EU nationals at the bloc's external borders. Travellers register by scanning their passports and having their fingerprints and photographs taken. The EU says the system is meant to detect overstayers, tackle identity fraud and prevent illegal migration across the 29 Schengen countries.

Source: Reuters, Nov 9 2026 — EU sues IBM and two European companies over troubled border system, FT reports

The system began a progressive rollout in October 2025 and reached full deployment in April 2026. A spokesperson for eu-LISA said: 'As the proceedings are ongoing, we do not comment on the details of the case. The proceedings concern the system's development phase and have no impact on its current operation' — adding that the system is fully operational across Europe. The European Commission has said it is not a party to the proceedings. IBM, Atos and Leonardo did not immediately respond to requests for comment, Reuters said.

Source: Reuters, Nov 9 2026 — EU sues IBM and two European companies over troubled border system, FT reports

2019Year the six-year core contract was awarded
2022The system's original planned launch year
Dec 2025When eu-LISA filed the claim in Estonia
29Schengen countries covered by the Entry/Exit System

Years of missed deadlines and disputed fines

The consortium — IBM Belgium, Atos Belgium and Leonardo — won the six-year contract in 2019 to build and maintain the central system. The Financial Times reported that the companies repeatedly missed deadlines and disputed the agency's warnings and fines, with letters between the consortium and eu-LISA showing disagreements about missed deadlines and fines going back several years; in an October 2021 letter the companies contested both the principle and the calculation of a fine the agency had imposed, blaming the pandemic and other outside factors.

Source: Technology.org, Nov 9 2026 — EU Sues IBM, Atos and Leonardo Over Border System

The launch slipped repeatedly: the system was meant to start in 2022, and a November 2024 start date was dropped weeks before launch. Its phased arrival was followed by long queues at European airports in the summer of 2026, which turned a back-office contract dispute into a public political issue in several member states.

Source: Technology.org, Nov 9 2026 — EU Sues IBM, Atos and Leonardo Over Border System

What happens next: the claim will be heard in Estonia's Harju county court. For travellers — including Punjabi and Indian visitors, students and workers who now give fingerprints at Schengen borders — the agency's position is that nothing changes at the border while the case runs: the Entry/Exit System stays fully operational, and the fight is over who pays for the years it took to build it.

Source: Techopia, Nov 9 2026 — EU border system contractors face Estonian lawsuit