EU AI Act guide
EU AI Act penalties: the Article 99 fine structure
The EU AI Act sets a three-tier administrative-fine structure in Article 99. Using a prohibited AI practice (Article 5) can cost up to €35 million or 7% of total worldwide annual turnover, whichever is higher. Breaching most other obligations — provider and deployer duties, and the Article 50 transparency rules — tops out at €15 million or 3%. Supplying incorrect or misleading information to authorities caps at €7.5 million or 1%. For SMEs and start-ups the rule flips: the lower of the fixed cap and the turnover percentage applies (Article 99(6)).
Last reviewed: 4 July 2026
EU AI Act administrative-fine tiers under Article 99
| Maximum fine | Conduct fined | Legal basis |
|---|---|---|
| €35M or 7% | Non-compliance with the Article 5 prohibited practices. The fine is up to €35 million or, for a company, up to 7% of total worldwide annual turnover for the preceding financial year, whichever is higher. | Art. 99(3) |
| €15M or 3% | Non-compliance with provider, deployer, authorised-representative, importer, distributor and notified-body obligations, including the Article 50 transparency duties. Up to €15 million or 3% of worldwide annual turnover, whichever is higher. | Art. 99(4) |
| €7.5M or 1% | Supplying incorrect, incomplete or misleading information to notified bodies or national competent authorities in reply to a request. Up to €7.5 million or 1% of worldwide annual turnover, whichever is higher. | Art. 99(5) |
For SMEs, including start-ups, Article 99(6) reverses the rule: each fine is capped at the lower of the fixed amount and the turnover percentage, rather than the higher. For a small undertaking the turnover percentage is almost always the binding, lower figure — which meaningfully limits exposure. SME status uses the EU definition in Recommendation 2003/361/EC.
General-purpose AI model providers are fined under a separate regime. The European Commission, via the AI Office, may impose fines of up to €15 million or 3% of worldwide annual turnover, whichever is higher (Article 101). These fining powers are exercisable from 2 August 2026. National market surveillance authorities enforce Article 99; the Commission enforces Article 101.
To estimate your own maximum exposure — including the SME reduction under Article 99(6) — use the free penalty calculator. Estimate your fine exposure.
Frequently asked questions
What is the maximum fine under the EU AI Act?
The highest tier is up to €35 million or 7% of total worldwide annual turnover, whichever is higher, for using a prohibited AI practice under Article 5 (Article 99(3)). Most other breaches cap at €15 million or 3% (Article 99(4)), and supplying misleading information to authorities caps at €7.5 million or 1% (Article 99(5)).
Do SMEs pay lower EU AI Act fines?
Yes. Article 99(6) flips the rule for SMEs and start-ups: instead of the higher of the fixed cap and the turnover percentage, the lower of the two applies. For a small company the turnover percentage is almost always the binding figure, so the effective cap is far below the headline €35M / €15M / €7.5M amounts.
How are general-purpose AI model providers fined?
Separately from Article 99. Under Article 101 the European Commission, through the AI Office, can fine a GPAI model provider up to €15 million or 3% of worldwide annual turnover, whichever is higher. These powers apply from 2 August 2026. The enforcer is the Commission, not national authorities.
Did the Digital Omnibus change the EU AI Act fines?
No. The Digital Omnibus on AI did not alter the fine tiers, caps or percentages. It changed when certain obligations become enforceable (deferring the high-risk waves) and added breaches of Article 25(2)/(4) to the existing €15 million / 3% tier, but the amounts are unchanged.