Article 75c: Non-compliance, fines and periodic penalty payments
1.
Where the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) finds that an operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) falling within the scope of Article 75(1) does not comply with the relevant provisions of this Regulation or with commitments made binding pursuant to Article 75b, it shall adopt a decision establishing such non-compliance.Not present before the amendment.
2.
Before adopting a decision pursuant to paragraph 1, the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) shall communicate its preliminary findings to the operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) concerned. In the preliminary findings, the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) shall explain the measures that it is considering taking, or that it considers that the operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) concerned should take, in order to effectively address the preliminary findings.Not present before the amendment.
3.
In the decision pursuant to paragraph 1 of this Article, the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) shall, where relevant, order the operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) concerned to take the necessary measures to ensure compliance with the relevant provisions of this Regulation within a reasonable period specified therein and to provide information on the measures that that operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) intends to take to comply with the decision. The operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) concerned shall provide the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) with a description of the measures it has taken to ensure compliance with the decision upon their implementation. Prior to requesting any measure, the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) may engage in a structured dialogue with the operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) of the AI systemAI systemmeans a machine-based system that is designed to operate with varying levels of autonomy and that may exhibit adaptiveness after deployment, and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environmentsArticle 3(1) in question. During this dialogue, the operatoroperatormeans a provider, product manufacturer, deployer, authorised representative, importer or distributorArticle 3(8) may propose commitments in accordance with Article 75b.Not present before the amendment.
4.
A decision adopted pursuant to paragraph 1 of this Article may be accompanied by the imposition of penalties in accordance with Article 99(3) to (7), which provisions shall apply mutatis mutandis to the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) in the execution of its supervision and enforcement tasks referred to in Article 75(1).Not present before the amendment.
In particular, the following shall be subjectsubjectfor the purpose of real-world testing, means a natural person who participates in testing in real-world conditionsArticle 3(58) to administrative fines as referred to in Article 99(4):Not present before the amendment.
(a)
infringement of any applicable provision of this Regulation, including those not listed in Article 99(4);Not present before the amendment.
(b)
failure to comply with decisions or measures adopted pursuant to the powers listed in Article 14(4) or Article 16(3) of Regulation (EU) 2019/1020, as well as those specified in Article 75a of this Regulation;Not present before the amendment.
(c)
failure to comply with a commitment made binding by a decision pursuant to Article 75b.Not present before the amendment.
The supply of incorrect, incomplete or misleading information to the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) in reply to a request shall be subjectsubjectfor the purpose of real-world testing, means a natural person who participates in testing in real-world conditionsArticle 3(58) to administrative fines as referred to in Article 99(5).Not present before the amendment.
5.
The AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) may adopt a decision imposing periodic penalty payments to compel the operators subjectsubjectfor the purpose of real-world testing, means a natural person who participates in testing in real-world conditionsArticle 3(58) to its competence pursuant to Article 75(1) to the following:Not present before the amendment.
(a)
to submit to an investigation;Not present before the amendment.
(b)
to comply with an information request ordered by a decision adopted under Article 75a(3);Not present before the amendment.
(c)
to submit to an inspection ordered by a decision pursuant to Article 75a(4);Not present before the amendment.
(d)
to provide correct or complete answers or explanations in the context of an inspection ordered by a decision pursuant to Article 75a(4);Not present before the amendment.
(e)
to comply with corrective actions ordered pursuant to the power listed in Article 16 of Regulation (EU) 2019/1020;Not present before the amendment.
(f)
to comply with commitments made legally binding by a decision pursuant to Article 75b; orNot present before the amendment.
(g)
to comply with a decision pursuant to the paragraph (1) of this Article.Not present before the amendment.
Those penalty payments shall be effective and proportionate, and, where applicable, shall not exceed 5 % of the average daily income or worldwide annual turnover in the preceding financial year per day, calculated from the date appointed by the decision.Not present before the amendment.
6.
The Court of Justice of the European Union shall have unlimited jurisdiction to review decisions of the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) fixing a fine or periodic penalty payment pursuant to this Article. It may cancel, reduce or increase the fine or periodic penalty payment imposed.Not present before the amendment.
7.
Funds collected through the imposition of fines or periodic penalty payments pursuant to this Article shall contribute to the general budget of the Union.Not present before the amendment.
8.
The powers conferred on the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) by this Article shall be subjectsubjectfor the purpose of real-world testing, means a natural person who participates in testing in real-world conditionsArticle 3(58) to a limitation period of five years. The limitation period shall begin to run on the day on which the infringement is committed. However, in the case of continuing or repeated infringements, the limitation period shall begin to run on the day on which the infringement ceases.Not present before the amendment.
The power of the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) to enforce decisions taken pursuant to this Article shall be subjectsubjectfor the purpose of real-world testing, means a natural person who participates in testing in real-world conditionsArticle 3(58) to a limitation period of five years. The limitation period shall begin to run on the day on which the decision becomes final.Not present before the amendment.
The implementing act referred to in Article 75d(3) shall specify the first and second subparagraphs of this paragraph, including the circumstances in which the limitation periods shall be interrupted.Not present before the amendment.
9.
Where the AI OfficeAI Officemeans the Commission’s function of contributing to the implementation, monitoring and supervision of AI systems and general-purpose AI models, and AI governance, provided for in Commission Decision of 24 January 2024; references in this Regulation to the AI Office shall be construed as references to the CommissionArticle 3(47) determines that there are no grounds to adopt a decision of non-compliance, it shall close the proceeding by a decision. That decision shall apply with immediate effect.Not present before the amendment.