• Capgemini will sell its U.S. subsidiary due to pressure over its contract with ICE.
• French lawmakers demand transparency amid concerns over ICE practices.
• The company stated "legal constraints" hindered its control over the subsidiary's operations.

French IT giant Capgemini announced it will sell its U.S. subsidiary, Capgemini Government Solutions, following significant pressure from French lawmakers regarding its contract with the U.S. Immigration and Customs Enforcement (ICE). This decision comes after public outcry over the fatal shootings of two U.S. citizens by ICE agents in Minnesota, leading to widespread condemnation and protests. The contract awarded to the subsidiary for tracking individuals raised ethical concerns among officials and activists, according to Le Monde, Reuters, and South China Morning Post.

Capgemini's CEO Aiman Ezzat indicated that the company was not aware of the "nature and scope" of the contract until recently, which included "skip tracing services" for ICE, aimed at locating individuals for enforcement operations. Due to "usual legal constraints" that govern contracts with federal entities, the company felt unable to exert adequate control over the subsidiary's operations. This decision affects only 0.4% of the group's total expected revenue for 2025, as noted in multiple reports from Reuters, India Times, and Business Insider.

The contract's details include a payment of over $4.8 million for services related to enforcement and removal operations, which sparked concerns over human rights implications among French lawmakers. The rising scrutiny of ICE's practices, further intensified by protests, led to demands for Capgemini to explain its involvement and ensure alignment with ethical standards, according to sources including BBC and South China Morning Post.

Capgemini's decision to divest was formalized with plans initiated immediately, aligning with internal reviews of existing contracts. The company is facing calls from French officials, including Finance Minister Roland Lescure, for greater transparency regarding its operations with ICE. Lawmakers are urging corporate accountability amidst ongoing concerns regarding immigration policies in the U.S., as highlighted by reports from India Times and Reuters.