The first faces the top fine tier for a prohibited: Under the EU AI Act's fine structure, how do their maximum
A prohibited-practice violation attracts the highest fine tier, well above the lower tier applied to a transparency-disclosure lapse.
The question
A regulator is reviewing one company that deployed a banned emotion-recognition system in its workplace and a second company that merely failed to disclose that users were chatting with an AI. Under the EU AI Act's fine structure, how do their maximum exposures compare?
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- Both face the identical top fine tier, because the EU AI Act treats any breach as a violation carrying the same maximum penaltyPlausible but wrong: the Act deliberately tiers fines by severity, so breaches are not treated identically.
- The second faces the higher tier, because failing to inform users is judged the more serious of the two violationsReverses the hierarchy: a transparency lapse is less severe than engaging in a prohibited practice.
- Neither faces administrative fines, because the Act relies on corrective orders rather than monetary penaltiesIncorrect: the Act provides for administrative fines, not merely corrective orders, for these violations.
- The first faces the top fine tier for a prohibited practice, while the second faces a lower tier for a transparency lapse ✓Correct: a prohibited practice sits in the highest fine tier, above the lower tier for a transparency breach.
The trap
Assuming every EU AI Act breach carries the same maximum fine rather than a severity-based tier. How to remember it
A prohibited-practice violation attracts the highest fine tier, well above the lower tier applied to a transparency-disclosure lapse.
How many of these would you get right?
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Every answer, right and wrong, comes with its own explanation.
