Penalties

1.   Member States shall lay down the rules on penalties applicable to infringements of this Regulation by hosting service providers and shall take all measures necessary to ensure that they are implemented. Such penalties shall be limited to addressing infringements of Article 3(3) and (6), Article 4(2) and (7), Article 5(1), (2), (3), (5) and (6), Articles 6, 7, 10 and 11, Article 14(5), Article 15(1) and Article 17.
The penalties referred to in the first subparagraph shall be effective, proportionate and dissuasive. Member States shall, by 7 June 2022, notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.
2.   Member States shall ensure that the competent authorities, when deciding whether to impose a penalty and when determining the type and level of penalty, take into account all relevant circumstances, including:
(a)
the nature, gravity and duration of the infringement;
(b)
whether the infringement was intentional or negligent;
(c)
previous infringements by the hosting service provider;
(d)
the financial strength of the hosting service provider;
(e)
the level of cooperation of the hosting service provider with the competent authorities;
(f)
the nature and size of the hosting service provider, in particular whether it is a micro, small or medium-sized enterprise;
(g)
the degree of fault of the hosting service provider, taking into account the technical and organisational measures taken by the hosting service provider to comply with this Regulation.
3.   Member States shall ensure that a systematic or persistent failure to comply with obligations pursuant to Article 3(3) is subject to financial penalties of up to 4 % of the hosting service provider’s global turnover of the preceding business year.