Ensuring GDPR Compliance for Companies Collecting Data in EU Countries

Companies that collect data on citizens in European Union (EU) countries are facing strict rules around protecting customer data under the General Data Protection Regulation (GDPR). The GDPR sets a standard for consumer rights regarding their data, but companies are finding it challenging to maintain compliance.

One of the concerns and expectations of security teams regarding GDPR compliance is the broad definition of personally identifiable information (PII). Companies are required to provide the same level of protection for data like IP addresses and cookie data as they do for more traditional PII such as name, address, and Social Security number.

The GDPR leaves much room for interpretation, stating that companies must provide a “reasonable” level of protection for personal data without defining what constitutes “reasonable.” This ambiguity gives the GDPR governing body flexibility in assessing fines for data breaches and non-compliance.

The GDPR, adopted by the European Parliament in April 2016, replaces an outdated data protection directive from 1995. It mandates that businesses protect the personal data and privacy of EU citizens for transactions within EU member states and regulates the exportation of personal data outside the EU.

The GDPR affects any company that stores or processes personal information about EU citizens within EU states, even if the company does not have a physical presence in the EU. Companies with more than 250 employees or those processing sensitive personal data must comply with the GDPR.

Failure to comply with the GDPR can result in steep penalties of up to €20 million or 4% of global annual turnover, whichever is higher. Regulators have issued fines for non-compliance, with the largest fine to date being €1.2 billion against Meta Platforms Ireland Limited for insufficient legal basis for data processing.

To stay GDPR compliant, companies must involve all stakeholders, conduct periodic risk assessments, appoint a Data Protection Officer (DPO), create and maintain a data protection plan, and implement measures to mitigate risks. Ongoing assessment and testing of incident response plans are also crucial to ensuring compliance.

Despite the challenges posed by GDPR compliance, companies that prioritize data protection and privacy can turn compliance into a competitive advantage, boosting consumer confidence and improving overall data management and security practices.