Penalties and Fines
Financial sanctions for non-compliance with AI regulation requirements.
Definition
Penalties and Fines under the EU AI Act are financial sanctions that can be imposed on providers, deployers, and other actors who fail to comply with the regulation's requirements. The fines are designed to be effective, proportionate, and dissuasive.
Maximum fines under the AI Act include: up to €35 million or 7% of global annual turnover for prohibited AI practices; up to €15 million or 3% for violations of other requirements; up to €7.5 million or 1% for providing incorrect information. For SMEs and startups, the lower of each threshold applies.
Member States lay down rules on penalties and must notify the Commission. National competent authorities have the power to investigate violations, order corrective measures, and impose fines within these frameworks.
Sources
- •EU AI Act Article 99
- •EU AI Act Article 101
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