Mercedes team principal Toto Wolff has praised the FIA for their "robust" decision to punish Red Ball for breaching the Formula One cost cap.

The constructor have been fined $7million and handed a 10 per cent reduction in permitted aerodynamic allowance for the next year after they were found guilty of breaching the sport's budget cap.

Red Bull team principal Christian Horner called the punishments "Draconian", but acknowledged the team would accept them, having protested their innocence over the past few months.

Wolff was satisfied to see the sport's governing body come down on their rival for their offence, though he suggested sanctions could perhaps have been even tougher.

"I think the most important thing for me is there is a robust governance," Wolff told Sky Sports.

"They didn't bat an eyelid, they just followed the process.

"I know how rigorous they were with us, all throughout the year - that was a difficult process. It is good to see that there is a penalty, whether we deem it too low or too high."

Wolff shut down any suggestion that a lenient penalty could tempt Mercedes to commit their own breaches though, stating the whole affair had tarnished Red Bull's brand.

"I think what you see beyond the sporting penalty and financial fine, there is also a reputational damage," he added.

"In a world of transparency and good governance, that is just not on any more.

"Compliance-wise, whatever team you are, you are responsible for representing your brand, your employees, your partners. That's why, for us, it wouldn't be a business case."