Sanctions Regime – Art. 99
Fine Framework
The AI Act provides for graduated sanctions applicable since 2 August 2025:
| Infringement | Fine (max.) | Alternative |
|---|---|---|
| Prohibited AI practices (Art. 5) | EUR 35 million | 7% of global annual turnover |
| Other obligations (high-risk, transparency, GPAI, etc.) | EUR 15 million | 3% of global annual turnover |
| False/misleading information to authorities | EUR 7.5 million | 1% of global annual turnover |
The higher amount applies in each case.
SME Privilege
For SMEs and start-ups, the lower of the stated amounts (absolute vs. percentage) applies.
Further Measures
In addition to fines, market surveillance authorities may:
- Order withdrawal of the AI system from the market
- Enforce corrective measures (remediation, retraining)
- Prohibit placing into service until conformity is achieved
- Issue warnings
BAUER GROUP Risk Assessment
The fine risk is proportional to the infringement. For BAUER GROUP:
| Scenario | Risk | Mitigation |
|---|---|---|
| Prohibited practice (Art. 5) | Extremely high | Screening schema for every product → risk ≈ 0 |
| High-risk without conformity | High | Go/No-Go framework → non-conforming products not placed in the EU |
| Missing transparency labelling | Medium | Templates and processes implemented |
| Missing AI Literacy | Low | Integrated into onboarding |