What is the GDPR and why is it important for your business?

The European Union General Data Protection Regulation 2016/679 (“GDPR”, “Regulation”) is an important legal framework designed to protect the personal data of individuals in the European Union (the “EU”).

It sets out strict rules for the collection, storage, processing and sharing of personal data to ensure privacy and security.

The GDPR aims to ensure that the rights of individuals are adequately protected when their personal data is processed. Its provisions cover both the private sector and a significant part of the public sector. At the same time, the processing of information for law enforcement purposes is regulated by a separate piece of legislation – the Law Enforcement Data Protection Directive. This is clarified in Article 2 of the GDPR, which states that the processing of personal data in the course of activities carried out by competent authorities to investigate criminal offences is not regulated by this regulation. 

The main objective of the GDPR is to give individuals more control over their personal data, by ensuring the transparency of its processing. It also aims to reduce administrative barriers for businesses, while increasing customer confidence in companies that comply with data protection rules.

GDPR requirements

The GDPR provides for the functioning of independent supervisory authorities responsible for monitoring and compliance with standards. The European Data Protection Board (the “EDPB”) plays a key role in this regard, acting as an independent regulator at the EU level. Its task is to ensure the uniform and consistent application of the GDPR. 

The key concept in the field of data protection is personal data, which according to Art. 4 of the GDPR means “any information relating to an identified or identifiable natural person (“data subject”); an identifiable natural person means a person who can be identified, directly or indirectly, in particular by means of an identifier such as a name, an identification number, location data, an online identifier or by means of one or more factors relating to a physical, physiological, genetic, mental, economic, cultural or social condition”.

The benefits of the GDPR include a number of key aspects aimed at strengthening the rights of individuals and ensuring transparency in data processing:

  • Firstly, the GDPR provides for easy access to personal data: every individual has the right to receive clear and understandable information about how their data is used in a convenient format.
  • The second important advantage is the ability to transfer data between different service providers, which provides flexibility and control in choosing companies for cooperation.
  • The third right, commonly known as the “right to be forgotten”, guarantees the deletion of personal data if it is no longer needed for the stated purposes or if there is no legal basis for its processing.

In addition, the GDPR establishes the obligation of organisations to inform both the relevant supervisory authorities and affected individuals in the event of a data breach, which ensures transparency and rapid response in the event of a data security breach. Together, these mechanisms increase the level of user trust in companies and promote a culture of responsible attitude to personal information.

It is worth noting that the GDPR does not apply to the processing of personal data in the course of activities that are not subject to EU law, either by an individual in the course of purely personal or domestic activities, or by competent authorities for the purpose of preventing, investigating, detecting or investigating criminal offences or enforcing criminal penalties, including for the purpose of protecting and preventing threats to public safety.

Who is subject to the GDPR?

GDPR applies to all companies that operate in the European Union or process personal data of EU residents, regardless of the company’s geographical location. 

It applies to several types of organisations, including:

  • E-commerce platforms that offer goods or services to consumers in the EU, whether directly or through intermediaries.
  • Marketing and advertising agencies that collect or process data in order to develop and implement advertising campaigns targeted at European audiences.
  • Any company that has a customer base in the EU, including companies that provide advisory, technical, financial or other services to EU citizens.

This broad scope highlights the global impact of the GDPR, and encourages businesses to adapt their processes to comply with the regulation in order to avoid potential fines and ensure customer trust.

What are the benefits of GDPR for business?

The GDPR standardises the rules for all businesses operating in the EU market, encouraging innovation and transparency.

The main benefits of the GDPR include:

  • A single set of rules that eliminates legal differences between EU countries.
  • Appointment of data protection officers in companies that handle large amounts of data as an additional guarantee of compliance.
  • Simplified interaction with regulators, meaning that companies will only have to deal with one regulator in the country where they are headquartered when operating across borders.
  • Companies outside the EU that work with the data of EU citizens must comply with the GDPR.
  • Implementing the principle of “protection by default”, which means ensuring data protection at the product or service development stage.

The GDPR also encourages technological innovations that ensure privacy, such as:

  • Pseudonymisation, i.e. replacing identifiers in data records with artificial ones to reduce risks.
  • Encryption, i.e. encoding data so that only authorised persons can access it.

These methods make processing less intrusive and provide additional security.

What obligations does the GDPR impose on businesses?

The objectives of the GDPR include protecting privacy, promoting transparency and ensuring accountability in data processing practices. As such, the GDPR requires businesses to take clearly defined steps to protect personal data and ensure that individuals’ rights are respected. Among the GDPR’s key requirements is the establishment of mechanisms to ensure that data processing is lawful, transparent and fair.

Under the GDPR, companies must take clear steps to ensure that personal data is processed lawfully, transparently and fairly. Each data processing operation must be justified by a legal basis, such as consent, performance of a contract, legal obligation or protection of legitimate interests. Companies must establish procedures for data subjects to exercise their rights, such as access, rectification, erasure or transfer of data. 

In the event of a data breach, the company must notify the supervisory authority within 72 hours and, in the case of serious breaches, also notify the individuals concerned. 

The appointment of a data protection officer is a mandatory requirement for public authorities and organisations engaged in large-scale and systematic processing of personal data. In cases where such processing is not the main activity of the organisation, the appointment of a responsible person is recommended, but not mandatory.

Personal data may only be transferred outside the European Union if strict criteria are met to ensure compliance with international data protection standards. Such measures form the basis for ensuring global information security.

The implementation of data minimisation and accuracy principles has become a mandatory part of the activities of companies subject to the GDPR. These principles include regularly analysing and deleting unnecessary or outdated data, ensuring that stored information is up to date, and developing forms to collect only the information necessary to achieve a specific purpose.

Under Article 83 of the GDPR, fines for non-compliance with the regulation can be significant and are imposed according to a two-tiered system based on the seriousness of the breach and whether it is a first or repeat offence. Less serious breaches can result in fines of up to €10 million or 2% of annual turnover, whichever is higher, while more serious breaches can result in fines of up to €20 million or 4% of turnover.

What is a GDPR audit?

A GDPR audit is a review of the compliance of a company’s activities with the requirements of the European Union’s General Data Protection Regulation 2016/679. GDPR compliance helps companies avoid significant fines, legal sanctions and reputational damage associated with non-compliance.

A GDPR compliance audit usually starts with the collection and analysis of information about the company’s activities. To do this, questionnaires and specific forms are used to gather the necessary data in a structured way. The auditors also conduct interviews with company representatives to find out the specifics of the company’s operations. At the same time, the documentation relating to the processing of personal data is examined and, if there are digital products, such as websites or applications, these are analysed separately.

Before the audit begins, a confidentiality agreement is usually signed. This document ensures the protection of the information provided, including the company’s trade secrets and intellectual property. The agreement also creates the conditions for an open exchange of data between the organisation and the auditors, which is necessary for a quality audit.

Once the information has been collected, the auditor carries out a detailed analysis of it, comparing the data obtained with the provisions of the GDPR. The main objective of this phase is to identify inconsistencies between the organisation’s current practices and the requirements of the regulation. The auditor will determine which processes or aspects of the business need to be changed to ensure full compliance with personal data protection standards.

Based on the results of the audit, the auditor will make clear recommendations to address the issues identified. These may include proposals for training, implementing new documentation, establishing a clear access control system, signing additional confidentiality agreements or implementing algorithms for verifying contractors.

In conclusion

In summary, the GDPR is an important regulation that sets standards for the protection of personal data in the EU, ensuring transparency of processing and strengthening individuals’ control over their information. It covers various aspects of business operations, from data collection to data transfers outside the EU, while creating accountability mechanisms and implementing high security standards. Thanks to the GDPR, companies can build customer trust and minimise the risk of fines or reputational damage, underlining the importance of compliance.

How can Manimama Law Firm help you?

Manimama Law Firm specialises in providing a full range of GDPR compliance services, tailoring its solutions to the individual needs of each business. It offers thorough data protection impact assessments, the development of comprehensive compliance systems and the implementation of effective tools for ongoing monitoring and staff training. 

With a team of experienced experts, Manimama Law Firm ensures compliance, and creates the conditions for secure business development, customer confidence and operational efficiency. The company also helps organisations navigate the complex and ever-changing regulatory environment, contributing to long-term success.

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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.