**Target:** Proposal for a regulation — Article 71 — paragraph 1

## Text proposed by the Commission

1. In compliance with the terms and conditions laid down in this Regulation, Member States shall lay down the rules on penalties, including administrative fines, applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are properly and effectively implemented. The penalties provided for shall be effective, proportionate, and dissuasive. They shall take into particular account the interests of small-scale providers and start-up and their economic viability.

## Amendment of the European Parliament

1. In compliance with the terms and conditions laid down in this Regulation, Member States shall lay down the rules on penalties, applicable to infringements of this Regulation by any operator, and shall take all measures necessary to ensure that they are properly and effectively implemented and aligned with the guidelines issued by the Commission and the AI Office pursuant to Article 82b . The penalties provided for shall be effective, proportionate, and dissuasive. They shall take into account the interests of SMEs and start-ups and their economic viability;