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What Is the General Data Protection Regulation (GDPR)?
The General Data Protection Regulation (GDPR) is a comprehensive data privacy law enacted by the European Union (EU) in 2018. It governs how organizations collect, store, process, and protect personal data belonging to individuals within the EU and the European Economic Area (EEA).
GDPR applies to any company, regardless of where it is located, that handles the personal data of EU residents. This means that U.S.-based organizations offering goods or services to EU citizens or monitoring their behavior must comply with GDPR requirements.
GDPR’s purpose is to strengthen individual privacy rights, ensure transparent data practices, and promote accountability among businesses that process personal data.
Why GDPR Matters to Businesses
GDPR significantly changes how organizations manage personal information. It enforces strict compliance obligations and introduces major financial penalties for noncompliance, up to 20 million euros or 4% of global annual revenue, whichever is higher.
Key reasons GDPR compliance is critical for businesses:
- Legal Accountability: Noncompliance can lead to significant fines and reputational harm.
- Customer Trust: Demonstrates a company’s commitment to protecting personal data.
- Operational Efficiency: Encourages better data governance and internal processes.
- Global Reach: Compliance enhances cross-border business opportunities by meeting EU standards.
- Risk Management: Reduces exposure to data breaches and regulatory scrutiny.
Learn how to manage data privacy and risk effectively using Apptega’s Cybersecurity and Compliance Management Platform.
What Businesses Are Required to Do
Organizations subject to GDPR must implement both technical and organizational measures to protect personal data and demonstrate ongoing compliance.
Core requirements include:
- Establishing a lawful basis for processing: Companies must justify why they collect and process personal data (e.g., consent, legal obligation, contract).
- Providing clear consent mechanisms: Consent must be freely given, specific, informed, and easy to withdraw.
- Honoring data subject rights: Individuals can request access, corrections, deletions, or restrictions on processing.
- Appointing a Data Protection Officer (DPO): Required for certain organizations that process large-scale sensitive data.
- Reporting data breaches: Companies must notify supervisory authorities within 72 hours of discovering a breach.
Apptega’s Risk Management solution helps organizations assess vulnerabilities and maintain continuous compliance readiness.
Implementation and Documentation Requirements
Successful GDPR implementation requires a structured approach combining policy creation, technical safeguards, and employee awareness.
Core documentation requirements include:
- Records of processing activities (Article 30 documentation)
- Data retention and privacy policies
- Security control reports and risk assessments
- Breach response procedures and logs
- Evidence of staff training and vendor compliance
Implementation steps:
- Gap Assessment: Identify data protection weaknesses and compliance gaps.
- Remediation Planning: Assign responsibilities and timelines for compliance improvements.
- Policy Development: Draft or revise privacy policies and consent forms.
- Evidence Collection: Maintain documentation to verify compliance controls.
- Training & Awareness: Educate employees on data protection best practices.
Organizations often use centralized tools like Apptega’s Compliance Automation Platform to track and manage GDPR compliance efforts.
Legal and Regulatory Requirements
GDPR sets out obligations aligned with international privacy and security regulations. In many cases, organizations must align GDPR compliance with other frameworks such as:
- HIPAA: For health data privacy in the U.S.
- SOX (Sarbanes-Oxley Act): For corporate governance and data accuracy.
- PCI DSS: For payment card data security.
- CMMC: For defense contractors managing controlled unclassified information (CUI).
The alignment of GDPR with these frameworks helps organizations demonstrate a holistic approach to global data protection compliance.
How GDPR Works
GDPR functions through clear roles, responsibilities, and principles that guide how companies handle data. The process involves establishing ongoing mechanisms for compliance verification.
Typical GDPR compliance lifecycle:
- Assessment: Conduct data inventory and impact assessments.
- Documentation: Create required records and privacy statements.
- Control Implementation: Apply encryption, access management, and security monitoring.
- Monitoring: Continuously track compliance performance.
- Audit & Reporting: Regular internal audits verify alignment with GDPR requirements.
Many organizations use integrated governance platforms like Apptega to manage cross-framework compliance activities efficiently.
Real-World Examples and Use Cases
Example 1: Google Fined €50 Million (2019)
Google was fined by France’s data regulator for inadequate transparency in data collection and invalid consent mechanisms.
Example 2: British Airways Security Breach (2020)
A cyberattack exposed customer data, leading to a fine of £20 million for insufficient security measures.
Example 3: U.S. SaaS Company Serving EU Clients
A U.S.-based SaaS provider implemented GDPR-compliant controls using a compliance management platform to ensure lawful processing and proper consent handling, reducing cross-border legal risk.
Learn how organizations integrate GDPR and global compliance programs with Apptega’s Compliance Management tools.
