Source: OJ L 277, 27/10/2022, p. 1–102Current language: EN
- Digital services act
Basic legislative acts
- DSA regulation
Article 74 Fines
Summary What does Article 74 of the DSA regulation say?
This article sets out the fining powers available to the Commission against providers of very large online platforms and very large online search engines.
It operates as the financial enforcement mechanism tied directly to the non-compliance decision process established in Article 73.
The article creates a two-tier fine structure: a higher ceiling for substantive breaches of the regulation itself, and a lower ceiling for procedural failures such as obstructing the Commission's investigative process.
Before a fine for procedural failures is imposed, the Commission must first share its preliminary findings with the party concerned.
When determining the actual amount of any fine, the Commission must consider the nature, gravity, duration, and recurrence of the infringement.
Important points:
- The Commission can impose fines of up to 6% of total worldwide annual turnover for substantive breaches, including non-compliance with the regulation itself, failure to comply with interim measures, or breach of binding commitments.
- A lower fine ceiling of up to 1% of total annual income or worldwide turnover applies for procedural failures, such as supplying incorrect information, refusing an inspection, or failing to comply with the Commission's investigative measures.
- When determining the fine amount, the Commission must take into account the nature, gravity, duration, and recurrence of the infringement.
Springlex's summary of the article is a reading aid, not a substitute for the legal text.
In the decision referred to in Article 73, the Commission may impose on the provider of the very large online platform or of the very large online search engine concerned fines not exceeding 6 % of its total worldwide annual turnover in the preceding financial year where it finds that the provider, intentionally or negligently:
infringes the relevant provisions of this Regulation;
fails to comply with a decision ordering interim measures under Article 70; or
fails to comply with a commitment made binding by a decision pursuant to Article 71.
The Commission may adopt a decision imposing on the provider of the very large online platform or of the very large online search engine concerned or on another natural or legal person referred to in Article 67(1) fines not exceeding 1 % of the total annual income or worldwide turnover in the preceding financial year, where they intentionally or negligently:
supply incorrect, incomplete or misleading information in response to a simple request or request by a decision pursuant to Article 67;
fail to reply to the request for information by decision within the set period;
fail to rectify within the period set by the Commission, incorrect, incomplete or misleading information given by a member of staff, or fail or refuse to provide complete information;
refuse to submit to an inspection pursuant to Article 69;
fail to comply with the measures adopted by the Commission pursuant to Article 72; or
fail to comply with the conditions for access to the Commission’s file pursuant to Article 79(4).
Before adopting the decision pursuant to paragraph 2 of this Article, the Commission shall communicate its preliminary findings to the provider of the very large online platform or of the very large online search engine concerned or to another person referred to in Article 67(1).
In fixing the amount of the fine, the Commission shall have regard to the nature, gravity, duration and recurrence of the infringement and, for fines imposed pursuant to paragraph 2, the delay caused to the proceedings.
Relevant recitals
Recital 144 Fines and periodic penalty payments
Compliance with the relevant obligations imposed under this Regulation should be enforceable by means of fines and periodic penalty payments. To that end, appropriate levels of fines and periodic penalty payments should also be laid down for non-compliance with the obligations and breach of the procedural rules, subject to appropriate limitation periods in accordance with the principles of proportionality and ne bis in idem. The Commission and the relevant national authorities should coordinate their enforcement efforts in order to ensure that those principles are respected. In particular, the Commission should take into account any fines and penalties imposed on the same legal person for the same facts through a final decision in proceedings relating to an infringement of other Union or national rules, so as to ensure that the overall fines and penalties imposed are proportionate and correspond to the seriousness of the infringements committed. All decisions taken by the Commission under this Regulation are subject to review by the Court of Justice of the European Union in accordance with the TFEU. The Court of Justice of the European Union should have unlimited jurisdiction in respect of fines and penalty payments in accordance with Article 261 TFEU.
Springlex and this text is meant purely as a documentation tool and has no legal effect. No liability is assumed for its content. The authentic version of this act is the one published in the Official Journal of the European Union.
Definition
recipient of the service
Definition
information society service
Definition
turnover
Definition
intermediary service
- a ‘mere conduit’ service, consisting of the transmission in a communication network of information provided by a recipient of the service, or the provision of access to a communication network;
- a ‘caching’ service, consisting of the transmission in a communication network of information provided by a recipient of the service, involving the automatic, intermediate and temporary storage of that information, performed for the sole purpose of making more efficient the information's onward transmission to other recipients upon their request;
- a ‘hosting’ service, consisting of the storage of information provided by, and at the request of, a recipient of the service;
Definition
online platform
Definition
online search engine