Consequences of non-compliance
The EU-member states may set their penalties for non-compliance with DAC7 independently. However, DAC7 states that the penalties should be “effective, proportionate and dissuasive”. The Member States and their competent authorities are responsible to implement DAC7 into their laws and regulations. Consequently, there may be discrepancies between the penalties in the different Member States. Furthermore, the penalties may be decided on a case-by-case basis depending on the seriousness of the offense. Furthermore, the Member States shall take coordinated action against non-EU digital platforms that are not fulfilling the requirements. This involves making it difficult or impossible for those digital platforms to operate.