When does this requirement take effect?

The EU AI Act entered into force August 1, 2024, with phased application: prohibited practices from February 2025, GPAI from August 2025, and high-risk obligations from August 2026.

What are the penalties for non-compliance?

Fines can reach up to 35 million EUR or 7% of global annual turnover for prohibited practice violations, 15 million EUR or 3% for most other violations, and 7.5 million EUR or 1% for supplying incorrect information.

Does this apply to SMEs?

Yes, but the EU AI Act includes proportionate measures for SMEs and startups, including capped fines, priority sandbox access, and simplified compliance pathways where appropriate.

How does MmowW help with compliance?

MmowW AI Compliance provides an AI inventory tool and readiness assessment to help organizations map their AI systems against regulatory requirements and maintain ongoing compliance documentation.

Quick answer

Penalties under the EU AI Act can reach up to 35 million EUR or 7% of global turnover for prohibited practices violations.

Updated June 2026 · MmowW AI Compliance

EU AI Act Penalties and Fines Under Article 99

Overview

Article 99 establishes three tiers of administrative fines: up to 35M EUR or 7% turnover for prohibited practices, up to 15M EUR or 3% for most other violations, and up to 7.5M EUR or 1% for supplying incorrect information. SMEs and startups receive proportionate caps.

Key Provisions

Aspect	Requirement	Deadline
Scope	Applies to providers and deployers in the EU market	Varies by article
Documentation	Technical documentation required before market placement	August 2, 2026
Penalties	Up to 35M EUR or 7% global turnover	From February 2, 2025

Compliance Steps

Identify whether your AI system falls within scope of the relevant article
Map your system against the specific requirements and obligations
Document compliance measures and maintain records
Implement technical and organizational measures as required
Establish monitoring and incident reporting procedures

Practical Considerations

Organizations deploying AI systems in the EU should begin compliance preparations well ahead of enforcement dates. The phased implementation timeline provides an opportunity to build compliance infrastructure incrementally. Start with a comprehensive AI inventory and risk classification exercise to determine which obligations apply to your specific systems.

Cross-border operations may need to coordinate with multiple national competent authorities. The European AI Office provides centralized guidance for general-purpose AI models, while national authorities oversee high-risk system compliance within their jurisdictions.

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This article is for informational purposes only and does not constitute legal advice. Regulatory requirements change frequently — verify current rules with official sources. Built by Sawai Gyoseishoshi Office, Hiroshima, Japan.