CADA tracker · source extraction

Article 24

printed pages 57–58 · source locator: Article 24 occurrence 1; printed pages 57–58

Official source: COM(2026) 502 final — Proposal for a Cloud and AI Development Act

Article 24

Penalties and compensation
     1.   Member States shall lay down the rules on penalties applicable to infringements of
          this Chapter by cloud computing service providers within their competence and shall
          take all measures necessary to ensure that they are implemented. The penalties
          provided for shall be effective, proportionate and dissuasive. Member States shall, as
          soon as possible, notify the Commission of those rules and of those measures and
          shall notify the Commission of any subsequent amendment affecting them.
     2.   Member States shall take into account the following non-exhaustive criteria for the
          imposition of penalties for infringements of this Regulation:
          (a)   the nature, gravity, scale and duration of the infringement;
          (b)   any action taken by the infringing party to mitigate or remedy the damage
                caused by the infringement;
          (c)   any previous infringements by the infringing party;
          (d)   the financial benefits gained or losses avoided by the infringing party due to
                the infringement, insofar as such benefits or losses can be reliably established;
          (e)   any other aggravating or mitigating factor applicable to the circumstances of
                the case;
          (f)   infringing party’s annual turnover in the preceding financial year in the Union.

     3.   Recipients of the cloud computing services shall have the right to seek, in accordance
          with Union and national law, compensation from cloud computing service providers
          for any damage or loss suffered due to an infringement by those providers of their
          obligations under this Chapter.
                                           SECTION 4
                              NATIONAL COMPETENT AUTHORITIES

Qualifications