In a rapidly evolving digital world, privacy issues concern both businesses and individuals. The European Union is addressing these concerns with a new rule called the General Data Protection Regulation (GDPR), harmonizing privacy laws throughout the EU and mandating a greater level of protection for citizens’ data.
The GDPR is a complex regulation. Simplified, it mandates the following:
Many GDPR provisions already exist in legislation in various countries. The GDPR allows these rules to be standardized across the EU and to apply to non-EU data processors interacting with EU citizens’ data. With its focus on transparency, the GDPR mandates a previously unknown level of individual visibility into and control of personal data, intending to protect the data of EU citizens and safeguard their privacy rights.
Called “increased territorial scope,” one of the major provisions of the GDPR is that it applies not only to EU organizations but to any processor of EU citizens’ data for exchanging goods and services or monitoring behavior. This is true regardless of the organization’s physical location and is not predicated on the exchange of money.
GDPR non-compliance is subject to a tiered fine approach. Penalties may be up to 4% of annual global turnover or €20 Million. Penalties apply to both data processors and controllers—the “cloud” is not exempt.