Extract from Katia Rossi’s article, “EU AI Act’s Next Phase Puts Pressure on Big Tech—and Not Just in Europe.”
The European Commission’s AI Office now has enforcement powers under the Act, with violations potentially resulting in fines of up to 3% of global annual turnover or €15 million, whichever is higher
The EU Artificial Intelligence Act’s latest transparency and enforcement provisions are set to extend regulatory scrutiny far beyond Europe, requiring any company whose AI systems or outputs reach EU users—including Big Tech and multinationals—to meet its rules.
“Reach is determined by targeting the EU market rather than where a provider is established,” said Christopher Götz, a Munich-based Simmons & Simmons partner who specializes in AI, IT and data protection laws. “This makes transparency-by-design an increasingly global compliance standard rather than a purely European one.”
The landmark Act was passed in 2024, but it is being implemented in stages.
