AI Act penalties

Article 99 sets three tiers of administrative fines. In each case the fixed amount or the percentage of worldwide annual turnover for the previous year applies, whichever is higher:

• Prohibited practices: up to €35 million or 7%.
• Breaching other obligations (high-risk, transparency, obligations of providers, deployers, importers or distributors): up to €15 million or 3%.
• Supplying incorrect, incomplete or misleading information to authorities: up to €7.5 million or 1%.

For SMEs and, after the Digital Omnibus, small mid-caps, the lower of the two applies. Providers of general-purpose models can be fined by the Commission up to €15 million or 3%. Fines take into account severity, duration, cooperation and steps taken to mitigate harm.