This article aims to give entrepreneurs, investors, and tech founders a clear understanding of what GDPR is, the principles behind it, and how compliance shapes the way businesses operate in a global digital environment.
What is GDPR and What Is Its Core Purpose?
The General Data Protection Regulation (GDPR) is a cornerstone legal framework that defines how companies must collect, store, process, and protect the personal data of individuals within the EU.
The Main Goals of GDPR
1. To Give People Control Over Their Data
GDPR clearly outlines the rights of individuals whose data is being processed. Every person has the right to:
- Know who is collecting their data and why;
- Access their personal data;
- Request corrections or deletion of that data;
- Restrict or object to data processing;
- Transfer their data to another service provider (data portability).
2. To Harmonize Data Laws Across the EU
Before GDPR, each EU country had its own rules for handling personal data. GDPR replaced this patchwork of national laws with a single, unified regulation. This makes it easier for businesses to scale across the EU while adhering to a consistent set of standards.
What Counts as Personal Data?
Under GDPR, personal data includes any information that directly or indirectly identifies a person. This can range from obvious details (like your name or photo) to technical or behavioral data (like your IP address or geolocation).
Examples of Personal Data:
- Obvious: Name, email address, phone number, profile photo;
- Technical: IP address, MAC address, device UUID;
- Biometric: Fingerprints, facial scans;
- Financial: Bank account info, payment history;
- Digital: Facebook or Google IDs, on-site behavior.
When Does GDPR Apply to Your Business?
You might think that if your business operates outside the EU, GDPR doesn’t concern you. That’s a common misconception. One of the defining features of the regulation is its extraterritorial scope.
GDPR applies to your business if:
1. You process data belonging to individuals located in the EU — regardless of where your company is based.
For example, if you run a SaaS platform with subscribers from France or the Netherlands, GDPR applies to you.
2. You offer goods or services to EU citizens or residents.
Even if you don’t accept payments in euros or have a local office, simply selling or shipping products to customers in the EU brings you under GDPR jurisdiction.
3. You track the behavior of users in the EU.
If you’re using tools like Google Analytics, Meta Pixel, or other trackers, you’re likely processing the personal data of EU users — and that falls under GDPR.
Real-World Example: A Ukrainian company sells digital courses through its website. It receives payments from customers in Poland and Spain. The company is registered only in Ukraine, but it stores customer email addresses and sends out marketing emails.
➡ In this case, the company is subject to GDPR and must implement appropriate policies, consent mechanisms, data encryption, and other compliance measures.
What Does GDPR Require from Businesses?
GDPR calls for responsible data practices, backed by clearly defined processes, policies, and technical safeguards. The regulation spans three core areas: legal, technical, and organizational.
Legal Requirements
- Clear and Transparent Privacy Policy
Your privacy policy must be written in plain, accessible language—no legal jargon. It should explain what data is collected, why it’s collected, how long it’s retained, and who it’s shared with. - Data Processing Agreements (DPAs)
If you use third-party providers (such as cloud services, CRMs, or email platforms), you must have a signed Data Processing Agreement in place with each of them. - Explicit, Active Consent
Pre-checked boxes are not allowed. Consent must be given freely and actively—typically through a checkbox or a clear affirmative action by the user.
Technical and Organizational Requirements
- Technical Security Measures
These include data encryption, access control, and two-factor authentication to protect personal data. - Organizational Measures
This covers staff training, appointing a Data Protection Officer (DPO), and establishing internal protocols for handling data breaches or incidents. - Responding to User Requests
Businesses must be ready to handle user requests to access, correct, or delete their data. In most cases, a response is required within 30 days.
Penalties and Consequences
- Fines
Depending on the severity of the violation, fines can reach up to €10 million or 2% of a company’s global annual turnover—or up to €20 million or 4%, whichever is higher. - Temporary or Permanent Processing Bans
Regulators can suspend a website or service until violations are resolved. - Reputational Damage
Public disclosures of data breaches or non-compliance can severely impact customer trust—especially if you work in the B2B space or with investors.
As Conclusion
GDPR represents a new paradigm for handling personal data—one built on transparency, user control, and respect for individual privacy. Businesses that embrace GDPR principles don’t just stay compliant—they earn trust from users, partners, and the broader market.
Recommendations from Manimama Law Firm:
- Conduct a data audit: What personal data are you collecting, and how is it processed?
- Update your policies: Implement consent banners, and review your contracts with third-party vendors.
- Train your team: Build a company-wide culture of responsible data handling.
Want to make sure your business is GDPR-compliant?
The legal team at Manimama Law Firm can help you create or update your documentation, assess your data protection practices, and safeguard your brand from fines and reputational risks.
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
