1. In accordance with the terms and conditions laid down in this Regulation, Member States shall lay down the rules on penalties and other enforcement measures, which may also include administrative fines, warnings and non-monetary measures, applicable to any infringement of this Regulation by operators, and shall take all measures necessary to ensure that they are properly and effectively implemented, thereby taking into account the guidelines issued by the Commission pursuant to Article 96. The penalties provided for shall be effective, proportionate and dissuasive. The Member States shall take into account the interests of SMEs, including start-ups, and SMCs, and their economic viability when imposing penalties. [...] 3. Non-compliance with the prohibition of the AI practices referred to in Article 5 shall be subject to administrative fines of up to EUR 35 000 000 or, if the offender is an undertaking, up to 7 % of its total worldwide annual turnover for the preceding financial year, whichever is higher. 4. Non-compliance with any of the following provisions related to operators or notified bodies, other than those laid down in Articles 5, shall be subject to administrative fines of up to EUR 15 000 000 or, if the offender is an undertaking, up to 3 % of its total worldwide annual turnover for the preceding financial year, whichever is higher: [...] (e) obligations of deployers pursuant to Article 26; [...] (g) transparency obligations for providers and deployers pursuant to Article 50. [...] 6. In the case of SMEs, including start-ups, each fine referred to in this Article shall be up to the percentages or amount referred to in paragraphs 3, 4 and 5, whichever thereof is lower. 6a. In the case of SMCs, each fine referred to in paragraphs 4 and 5 shall be up to the percentages or amount referred therein, whichever is lower.
How this was checked
Fines for prohibited practices, deployers and transparency
Verified · last checked Settled, with the evidence a claim at this level needs.
Under the EU AI Act, member states lay down the rules on penalties and other enforcement measures, which may also include administrative fines, warnings and non-monetary measures, and take into account the interests of SMEs, including start-ups, and SMCs, and their economic viability when imposing penalties. Non-compliance with the prohibition of the AI practices in Article 5 is subject to administrative fines of up to EUR 35 000 000 or, if the offender is an undertaking, up to 7% of its total worldwide annual turnover for the preceding financial year, whichever is higher. Non-compliance with the obligations of deployers under Article 26, or with the transparency obligations for providers and deployers under Article 50, is subject to administrative fines of up to EUR 15 000 000 or, if the offender is an undertaking, up to 3% of that turnover, whichever is higher. For SMEs, including start-ups, each of these fines is up to the percentage or the amount, whichever is lower; for SMCs, the same applies to the fines under Article 99(4) and (5), but not to the fine for prohibited practices.
At a glance
The statement laid out, in its own words. The statement above and its sources are what count.
Maximum fines
| Infringement | Up to | Which one applies |
|---|---|---|
| Prohibited AI practices (Article 5) | EUR 35 000 000 or, for an undertaking, 7% of total worldwide annual turnover for the preceding financial year | Whichever is higher; for SMEs, whichever is lower |
| Deployer obligations (Article 26) | EUR 15 000 000 or, for an undertaking, 3% of that turnover | Whichever is higher; for SMEs and SMCs, whichever is lower |
| Transparency obligations of providers and deployers (Article 50) | EUR 15 000 000 or, for an undertaking, 3% of that turnover | Whichever is higher; for SMEs and SMCs, whichever is lower |
Who sets the penalties
- Member states lay down the rules, which may also include administrative fines, warnings and non-monetary measures
- They take into account the interests and economic viability of SMEs, including start-ups, and SMCs
Where the book relies on it
- The AI Act at Work: Hiring and Managing People with AI, What you may never do at work. About The AI Act at Work: Hiring and Managing People with AI
- The AI Act at Work: Hiring and Managing People with AI, You are the deployer, and someone inside must answer. About The AI Act at Work: Hiring and Managing People with AI
- Kind of evidence
- documentarySettled by a first-hand source, quoted below with the day it was read.
The evidence
Every sentence in our books that makes a claim about the world points at a page like this one.