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Module 04

Chapitre 3 sur 8

Article 99

Penalty Framework Overview

~12 min read

Article 99 establishes a three-tier fine structure proportionate to the severity of the violation. Fines are calculated as the higher of an absolute ceiling (in euros) or a percentage of global annual turnover.

Violation CategoryMaximum Fine
Article 5 prohibited practices35M EUR or 7% of global annual turnover
Other regulation obligations (Articles 9-16, 26, etc.)15M EUR or 3% of global annual turnover
Incorrect/incomplete/misleading information to authorities7.5M EUR or 1.5% of global annual turnover
SME/start-up capLower of the above or 1.5% of annual global turnover

Regulation (EU) 2024/1689 — Article 99(3)

Non-compliance with the prohibition of the artificial intelligence 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.

Module 4

Ch. 3: Penalty Framework Overview

Penalty Framework Overview — Governance & Penalties | AZComply Academy