Article 99 • penalties
EU AI Act penalties: maximum fines under Article 99
The highest statutory tier is up to €35 million or 7% of worldwide annual turnover for prohibited AI practices. Other Article 99 tiers include up to €15 million/3% and €7.5 million/1%. U.S. companies can be exposed where the EU AI Act applies to them.
Updated: 26 September 2026 · Reviewed by Constantin Razvan Gospodin.
Direct answer
What is the maximum penalty under the EU AI Act?
For non-compliance with prohibited AI practices under Article 5, Article 99 provides administrative fines of up to €35 million or, if the offender is an undertaking, up to 7% of total worldwide annual turnover for the preceding financial year, whichever is higher. That is a statutory ceiling, not an automatic fine.
Main tiers
The highest caps are tied to different categories of infringement.
Prohibited AI practices
Non-compliance with Article 5 prohibitions can be subject to administrative fines up to €35 million or, for an undertaking, up to 7% of total worldwide annual turnover for the preceding financial year, whichever is higher, subject to the Regulation's proportionality rules.
Specified operator/transparency obligations
Article 99(4) provides caps up to €15 million or 3% of worldwide annual turnover, whichever is higher, for specified obligations including provider, authorised-representative, importer, distributor, deployer and Article 50 transparency duties, plus certain Article 25 obligations added by the 2026 amendment.
Incorrect or misleading information
Supplying incorrect, incomplete or misleading information to notified bodies or national competent authorities in response to a request can carry a cap up to €7.5 million or 1% of worldwide annual turnover, whichever is higher.
SMEs and small mid-caps
The Regulation contains special proportionality treatment. SMEs benefit from the lower of the applicable percentage/amount ceilings specified by Article 99; Regulation (EU) 2026/1744 added corresponding lower-cap treatment for small mid-cap enterprises for specified tiers.
Not automatic
Maximum fines are not a prediction of the penalty in a specific case.
Article 99 requires penalties to be effective, proportionate and dissuasive and identifies factors relevant to enforcement, including the nature, gravity and duration of infringement, cooperation, responsibility, mitigation and whether conduct was intentional or negligent.
2026 enforcement
Article 50 enforcement is no longer hypothetical.
The Commission stated that the AI Office and national authorities began enforcing applicable AI Act rules from 2 August 2026. Article 50 transparency obligations are included in the Article 99(4) fine tier.
Frequently asked
EU AI Act Article 99 penalty questions
What is the maximum penalty under the EU AI Act?
For prohibited AI practices under Article 5, Article 99 provides administrative fines up to €35 million or, for an undertaking, up to 7% of total worldwide annual turnover for the preceding financial year, whichever is higher.
What are the other main EU AI Act fine tiers?
Specified operator and transparency breaches can carry ceilings up to €15 million or 3% of worldwide annual turnover. Incorrect, incomplete or misleading information supplied in response to a request can carry ceilings up to €7.5 million or 1%.
Can a U.S. company be fined under the EU AI Act?
Yes, where the Regulation applies under Article 2 and an enforceable obligation is infringed. Headquarters outside the EU are not by themselves an exemption.
Is the maximum EU AI Act fine 6% or 7% of global turnover?
For prohibited AI practices, the final Article 99 ceiling is €35 million or 7% of total worldwide annual turnover for an undertaking, whichever is higher. A 6% figure does not describe the final maximum tier for prohibited practices.
How are EU AI Act fine ceilings calculated for companies?
Article 99 uses different statutory ceilings by infringement. For undertakings, the relevant fixed euro amount is compared with the applicable percentage of total worldwide annual turnover for the preceding financial year. The ceiling is not a prediction of the actual penalty.
Sources