# EU Sues IBM and Atos Over €212M Border System Delays Legal battle follows years of missed deadlines and ballooning costs for smart border infrastructure. - **Source:** [The Register](https://www.theregister.com) - **Published:** 2026-11-10 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/03785c09-03e1-45f5-bbea-30a41832c2a5 ## Legal Action Initiated The European Union agency eu-LISA filed a lawsuit in an Estonian court against IBM, Atos, and Leonardo. This legal action, initiated on December 22, 2025, seeks to address significant delays regarding the Entry-Exit System. The agency aims to protect EU financial interests following years of disputes over the project's development phase. ## Project Timeline Failures The smart border system was originally scheduled for completion in 2022 but did not go live until October 2025. Full operational status was only achieved in April 2026. These delays caused severe disruptions, including long airport queues and technical difficulties with fingerprint scanners, which struggled to process biometric data from travelers effectively. ## Contractual Cost Escalation The project budget expanded significantly, growing from an initial €142 million to €212 million by 2021. By 2023, the annual budget for the system nearly doubled to €40 million. These funds were diverted from other areas to cover rising maintenance costs for hardware and software as the project timeline continued to slip. ## Consortium Defense Strategy IBM and Atos previously disputed financial penalties imposed by eu-LISA, citing the COVID-19 pandemic as an external factor. By February 2022, the consortium warned that the agency's project timetable was unrealistic. They argued that ignoring operational realities would only lead to further frustration for all stakeholders involved in the complex infrastructure rollout. ## Governance and Friction Internal correspondence revealed deep friction between the consortium and eu-LISA regarding overall project governance. The companies criticized the agency's planning, while eu-LISA struggled to manage the escalating costs. This breakdown in communication contributed to the project's inability to meet its original deadlines, ultimately leading to the current legal proceedings in Estonia. ## Security and Procurement Concerns Beyond budget issues, the project faced scrutiny regarding procurement practices. Reports indicated that Atos utilized its Moscow office to acquire software for the border system, raising security questions about Russian involvement in critical European infrastructure. The EU's anti-fraud office, OLAF, reviewed these findings but referred the matter back to the agency. ## Current Operational Status Despite the ongoing legal dispute, the Entry-Exit System is currently fully operational at European borders. The agency confirmed that the lawsuit concerns only the development phase and does not impact the system's daily functionality. Travelers are now using the biometric checks, though the financial accountability for the project remains unresolved. ## Future Legal Outlook The Harju County Court in Estonia has confirmed the filing of the civil case, though no hearings have been scheduled yet. IBM and Atos have not provided public responses to the claims. The outcome will determine who bears the financial burden for the project's massive cost overruns and years of operational delays. ## Sources covering this story - https://www.theregister.com/public-sector/2026/11/10/eus-212m-border-it-project-lands-ibm-and-atos-in-legal-water/5308669 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._