EU AI Act Fines: 35 Million EUR or 7% — Complete Breakdown
This article was drafted with AI assistance and reviewed for factual accuracy. AI-origin labeling applies under Article 50 of the EU AI Act. What Are the EU AI Act Penalty Structures? The EU AI Act establishes a tiered penalty system with maximum fines ranging from 7.5 million EUR to 35 million EUR depending on the violation category and the offending party’s annual turnover (European Commission,…
The EU AI Act introduces a structured penalty system with maximum fines ranging from €7.5 million to €35 million, contingent on the violation category and the offending entity's annual turnover. This tiered structure applies to three operator tiers: €35 million or 7% of global annual turnover for prohibited practices, €15 million or 3% for high-risk and transparency obligations, and €7.5 million or 1% for supplying incorrect or misleading information to authorities.
Companies face the higher of the fixed amount or the percentage of their turnover. The AI Office anticipates a graduated approach, beginning with information requests and corrective actions, progressing to financial penalties upon non-compliance or failure to cooperate. Penalties rank among the highest in EU digital regulations, comparable to GDPR levels.
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