What are the statutory fine caps for SMEs and start-ups under EU AI Act Article 99(6)?
Unlike large enterprises where fines are calculated based on whichever is higher between a fixed euro cap and a percentage of worldwide turnover, Article 99(6) of the EU AI Act establishes a special proportionality safeguard for SMEs and start-ups: administrative fines are subject to the LOWER of the statutory amounts or percentages.
Enterprise buyers frequently demand unlimited indemnity for AI Act fines. Counter by citing Article 99(6) statutory caps tailored to SME proportionality.
Evaluate Your Deployment in 2 Clicks
Your selected configuration triggers statutory obligations requiring formal technical documentation, risk management systems, or immediate contract redlines before deployment.
Statutory Legal Foundations & Procurement Benchmarks
- 1Article 99(6) explicitly states: 'For SMEs, including start-ups, each fine referred to in this Article shall be up to the percentages or amount referred to in paragraphs 3, 4 and 5, whichever thereof is lower.'
- 2This structural protection is designed to prevent existential liquidity crises for European startups while preserving proportional accountability.
- 3When negotiating enterprise procurement DPAs, suppliers should refuse uninsurable unlimited indemnity for AI fines and align contractual liability with Article 99(6) proportional ceilings.
Need Audit-Ready Documentation for Enterprise Procurement?
Activate your workspace to auto-populate ROPA, AI inventories, and buyer deal rooms.
Informational compliance draft generated by EuroComply.app. EuroComply is software, not a law firm or legal adviser. Output is subject to qualified legal review.