Penalties can reach up to what amount or percentage?

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Multiple Choice

Penalties can reach up to what amount or percentage?

Explanation:
Penalties are often defined with two competing limits: a fixed euro cap and a percentage of global revenue, typically applying the higher of the two. This structure ensures the sanction is meaningful for small organizations and proportionate for large ones. The option with €35 million or 7% of global annual revenue reflects that dual limit, capturing both a concrete maximum and a scale with the company’s size. For a smaller entity, the fixed euro amount keeps the penalty bounded; for a large multinational, 7% of turnover can exceed the fixed cap, yielding a harsher consequence that matches the entity’s revenue. Other options either show only one dimension or use numbers that don’t align with this dual-structure approach, so they don’t represent how these penalties are designed to scale.

Penalties are often defined with two competing limits: a fixed euro cap and a percentage of global revenue, typically applying the higher of the two. This structure ensures the sanction is meaningful for small organizations and proportionate for large ones. The option with €35 million or 7% of global annual revenue reflects that dual limit, capturing both a concrete maximum and a scale with the company’s size. For a smaller entity, the fixed euro amount keeps the penalty bounded; for a large multinational, 7% of turnover can exceed the fixed cap, yielding a harsher consequence that matches the entity’s revenue. Other options either show only one dimension or use numbers that don’t align with this dual-structure approach, so they don’t represent how these penalties are designed to scale.

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