French EU presidency demands ‘proportional’ fines and extended deadlines – EURACTIV.com

The French presidency of the EU Council has made a number of recommendations regarding the implementation of EU law on artificial intelligence (AI), in a new compromise read by EURACTIV.

The new text is the latest in a series of negotiations presented by France, the head of the EU Council, until the end of June. Before its presidential term expires, Paris aims to submit a progress report to the Telecom Council on June 3, summarizing progress on the issue.

The new document makes significant changes to the sanctions regime, the timing of regulations, the confidentiality requirements for oversight bodies, and the powers vested in the European Commission.

The text is reviewed by the working group “Telecommunications” Thursday (May 5) at the EU Council

Fine

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The maximum fines were limited to illegal use of prohibited practices, such as social ratings or manipulative algorithms, as a reference to the obligation to return training datasets (Training information set) Representatives and neutrals have been removed.

For these more serious violations, SMEs and start-ups can be fined up to 3% of their annual turnover or € 30 million, whichever is higher. For all other companies, the maximum penalty will reach 6% of the annual turnover.

However, given the phrase “Maximum amount”The lower cap will only apply to SMEs and start-ups with a market capitalization above 1 billion.

For all other violations of the regulations, a company will be penalized 4% of the annual turnover, excluding start-ups or SMEs, for which they will be 3%, or 20 million euros, which is the maximum amount being kept. Punishment for providing incomplete or misleading information has not changed.

A new paragraph has been added which indicates that the sanctions imposed by the market surveillance authorities must be subject to appropriate procedural protections, including judicial remedies.

Last date for sending application

The deadline for enforcing the regulations has been extended from two to three years after it came into effect. “Give member countries more time to prepare for effective implementation and give businesses more time to adapt.”.

The deadline for member states to set up competent national authorities and advertised bodies responsible for assessing compatibility has also been extended from three to twelve months.

Privacy

The requirement of confidentiality for information and data obtained in the implementation of this regulation has been extended to the Commission, the Council of National Authorities and anyone involved in its implementation. Privacy must be ensured through technical and organizational arrangements.

Previously, the Privacy Rules only applied to advertising agencies, which were responsible for ensuring that certain AI systems complied with the rules before they were launched.

“The term is based on similar GDPR provisions”Referring to the EU Data Protection Act, the President explained in the accompanying note.

Vested authority and review

The division of powers given to the European Commission in the form of secondary law, i.e. legislation made by the executive branch, a recurring point of contention among co-legislators, the EU Council generally pressures the commission to give less. Freedom

The text is now included “Sunset Stream” On the power of the Commission to adopt enacted laws, which are no longer indefinite but are limited to five years after the enactment of the regulations.

Within this period, the Commission is required to submit a report on the exercise of its vested powers, which will be automatically extended unless the European Parliament or Council objects.

France has also proposed extending the deadline for evaluation and revision of the Annex, which is an important part of this rule.

Annex I, which defines AI systems, and Annex III, which lists high-risk AI systems, should be reviewed every two years until delegates have exhausted their capacity.

In this part of the text, the French presidency has made no changes to the administrative penalties that European data protection supervisors can impose on EU agencies for violating regulatory, secondary law and related laws.

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