Article 56

Fines and periodic penalty payments

1. Where the Agency proposes, pursuant to Article 54(1), first subparagraph, in respect to a Union space operator of Union owned-assets or a space services provider referred to in Article 48(1), points (b) and (c), that the Commission imposes a fine or a periodic penalty payment, for an infringement of this Regulation, the Commission may impose within the decision finding an infringement a fine or a periodic penalty payment, in accordance with paragraphs 2, 3, 4, 5, 6 and 7.

2. An infringement shall be considered to have been committed intentionally if objective factors demonstrate that a person acted deliberately to commit that infringement.

3. The maximum amount of the fine referred to in paragraph 1 shall be twice the amount of the profits that have been gained or twice the amount of losses that have been avoided because of the breach, where those can be determined, or, where this determination is not possible, 2 % of the total worldwide annual turnover, as defined in the relevant Union law, of a legal person in the preceding financial year.

4. When determining the level of the fine to be imposed pursuant to paragraph 1, the Commission shall take into account the criteria set out in Article 54(2).

5. The Commission may impose periodic fines and penalty payments to compel Union space operators of Union-owned assets, and respectively space services providers referred to in Article 48(1), points (b) and (c), to put an end to the infringement or to submit to an investigation, and in particular to produce the complete records, data, procedure or any other material required, and to complete and correct any other information provided in an investigation launched by a decision taken pursuant to Article 50.

6. A periodic penalty payment shall be effective and proportionate. The periodic penalty payment shall be imposed for each day of delay.

7. A periodic penalty payment shall be imposed for a maximum period of 6 months, following the notification of the decision of the Commission, unless it is determined, in the review of that measure, at the end of the period or 6 months, that the measure has not reached its purpose.

8. The amounts of the fines and periodic penalty payments shall be allocated to the general budget of the European Union.

9. With regard to the imposition of fines and periodic penalty payments in accordance with this Article, the Commission shall adopt delegated acts in accordance with Article 113, to supplement this Regulation, by laying down:

(a) the detailed criteria and methodology for establishing the amounts of the fines and periodic penalty payments;

(b) the detailed rules for the enquiries, associated measures and reporting, as well as the decision-making, including provisions on the rights of defence, access to file, legal representation, confidentiality and temporary provisions; and

(c) the procedures for the collection of the fines and periodic penalty payments.

10. The Court of Justice of the European Union shall have unlimited jurisdiction to review decisions imposing fines or periodic penalty payments. It may annul, reduce or increase the amount of a fine or periodic penalty payment imposed.

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