Article 54

Measures following an investigation by the Agency

1. When, based on the investigation referred to in Article 53(2), the Agency finds on a preliminary basis that a Union space operator of Union-owned assets or respectively a space services provider referred to in Article 48(1), points (b) and (c), has committed an infringement of the requirements laid down by this Regulation, as specified in Annex X, the Agency shall make a proposal to the Commission to establish the existence an infringement of this Regulation and to adopt one or more of the measures referred to in Article 55(1), first subparagraph, as regards the concerned Union space operator of Union-owned assets or space services provider referred to in Article 48(1), points (b) and (c). The Agency shall indicate all the factual elements, the rules breached and the proposed amount of the fine. The Commission may on its own initiative, upon request by a Member State or upon complaint investigate any infringement of this Regulation.

2. When submitting the proposal to the Commission referred to in paragraph 1, first subparagraph, the Agency shall consider the nature and the seriousness of the infringement based on its preliminary findings, having regard to the following criteria:

(a) the gravity and duration of the infringement and the permanence of the damages caused by the infringement;

(b) previous infringements perpetrated by that Union space operator of Union-owned assets;

(c) the material or non-material damage caused, or which could be caused, by or through the infringement, including financial or economic loss and adverse effects upon other services, as well as any relevant criteria as regards the impact of the infringement, such as the number of users affected or the magnitude of the losses incurred by a third-party as a result of that infringement;

(d) the intent or negligence on the part of the perpetrator of the infringement;

(e) the measures taken by the Union space operator of Union-owned assets to prevent or mitigate the material or non-material damage referred to in point (c);

(f) the level of cooperation during the investigation procedure, including any obstruction of audits or monitoring activities, following the discovery of the infringement;

(g) the importance of the profits gained, or of the losses avoided, by the natural or legal person responsible for the infringement;

(h) potential systemic consequences that such infringement may entail;

(i) the need for administrative fines to have a deterrent effect.

3. When the result of an investigation under this section does not allow the Agency to conclude on the existence of an infringement to this Regulation, the Agency shall adopt a decision closing the investigation. It shall without delay inform the Commission.

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