Penalties and Proportionality

In order to ensure effective and proportionate penalties, Member States should lay down the rules on administrative fines. The fine amount and structure reflects the severity of the violation: the highest fines for prohibited practices, lower fines for other AI Act obligations, and the lowest tier for providing false information. Fines should take into account the nature, gravity and duration of infringement, the size of the undertaking, and any action taken to mitigate damage. For SMEs and start-ups, lower fine caps shall apply.