EU AI Act fines: how much can Article 50 violations cost?
Article 50 transparency infringements sit in the AI Act's mid-tier penalty band: up to €15 million or, for an undertaking, 3% of total worldwide annual turnover in the preceding financial year. The Act applies different maximum-cap rules to SMEs.
The penalty tiers, context included
The AI Act has three fine bands:
| Violation | Maximum fine |
|---|---|
| Prohibited AI practices (Art. 5) | €35M or 7% of turnover |
| Most high-risk and GPAI obligations | €15M or 3% of turnover |
| Transparency (Art. 50) | €15M or 3% of turnover |
| Supplying misleading information to authorities | €7.5M or 1% of turnover |
How the cap works
For undertakings other than SMEs, Article 99 uses the higher of the fixed amount and the turnover-based percentage as the maximum. For SMEs, each fine must not exceed the lower of those two maximums. The authority must also consider the circumstances of the infringement and proportionality when setting the actual fine.
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