On Thursday 5 May, the members of the EU Council’s Telecommunications Working Party examined the latest version of the French Presidency’s compromise text on articles 70 to 85 of the proposed regulation on artificial intelligence (AI) (see EUROPE 12942/2).
The new version of the compromise text seeks first of all to strengthen the data privacy requirements. On this point, the document specifies that the requirements also apply to the European Commission and the future European AI Committee, whose role will be, among other things, to coordinate the various actions put in place in this field.
The French Presidency of the Council of the EU also indicates, following the remarks of several Member States, that the guarantee of data confidentiality will also have to be done through “technical and organisational measures”.
In addition, the text clarifies the sanctions that companies will face in case of non-compliance with the future regulation.
Consequently, the text now specifies that potential fines should be “proportionate” to the size of the company concerned. The amount of an administrative fine may not exceed €30 million or, if the offender is a company, 6% of its annual worldwide turnover.
Provisions have been added for small and medium-sized enterprises and start-ups. They may not be fined more than 3% of their annual worldwide turnover.
In addition, the new version of the text now stipulates that economic operators and notified bodies - designated by the Member States - could also be fined for non-compliance with the AI system. In this section, the amount of an administrative fine may not exceed €20 million or, if the offender is a company, 4% of its annual worldwide turnover. The ceiling would remain at 3% for SMEs and start-ups.
A new point has also been introduced in the new version of the compromise text to avoid the double imposition of a fine for the same offence in another Member State.
Finally, in addition to the procedural safeguards to be implemented by supervisory authorities, the text also returns to the general timeframe for the application of the Regulation after its entry into force.
The French Presidency of the Council is therefore proposing to extend this period from 24 to 36 months in order to give Member States more time to prepare. As a result, the document adds, the time allowed for Member States to set up notifying authorities, notified bodies and the governance structure has also been increased to 12 months. The issue of deadlines had been raised by several Member States who did want to have more room for manoeuvre.
See the document (in French): https://aeur.eu/f/1je (Original version in French by Thomas Mangin)