How And Why Do Companies Have To Comply With GDPR?

gdpr companies

In today’s digital age, data privacy has become a paramount concern. The General Data Protection Regulation (GDPR) has revolutionized how companies handle personal data. This blog explores the impact of GDPR on companies worldwide, not just in the EU. From legal obligations to protecting personal information, we delve into the challenges companies face & provide insights on how to achieve compliance. Whether you’re an EU-based business or operate internationally, understanding GDPR is essential.

What Type Of Companies Have To Comply With GDPR?

What Type Of Companies Have To Comply With GDPR?GDPR applies to various types of companies and organizations that process the personal data of individuals in the European Union. The regulation’s scope is broad & encompasses both EU-based companies & those operating outside of the EU.

Here are some examples of the types of companies that need to comply with GDPR:

  • EU-based companies: Any business or organization established in the EU, regardless of its size or sector, must comply with GDPR when processing personal data.
  • Non-EU companies targeting EU customers: If a company outside the EU offers goods or services to individuals in the EU or monitors their behavior (e.g., through website tracking or profiling), it falls under GDPR’s jurisdiction & must comply with its provisions.
  • Data processors: Companies that process personal data on behalf of other organizations, such as cloud service providers or IT service providers, also have obligations under GDPR. They are subject to specific requirements as data processors & must ensure compliance when handling personal data on behalf of their clients.

It’s important to note that the applicability of GDPR depends on the specific circumstances & activities involving personal data. Consulting legal professionals or data protection authorities can provide more detailed guidance tailored to individual cases.

Impact Of GDPR On Companies Outside the EU

GDPR can have a significant impact on companies outside of the EU that process the personal data of EU citizens. Even if a company is not physically located in the EU, it must comply with GDPR if it offers goods or services to individuals in the EU or monitors their behavior. This extraterritorial reach means that companies worldwide may need to adapt their data handling practices to align with GDPR requirements. Non-compliance can result in hefty fines, damage to reputation, & potential restrictions on doing business in the EU market. Therefore, companies outside the EU must be mindful of GDPR’s impact & take appropriate measures to ensure compliance.

Why Do Companies Have To Comply With GDPR?

Why Do Companies Have To Comply With GDPR?Companies have to comply with GDPR for several important reasons:

  • Legal Requirement: GDPR is a law that is enforceable in the European Union. Companies that process the personal data of EU citizens are legally obligated to comply with its provisions. Non-compliance can result in severe penalties, including fines of up to €20 million or 4% of global annual turnover, whichever is higher.
  • Protection of Personal Data: GDPR aims to protect the fundamental rights & freedoms of individuals regarding the processing of their data. By complying with GDPR, companies ensure that they handle personal data responsibly, respecting individuals’ privacy & data protection rights.
  • Enhancing Trust & Reputation: Compliance with GDPR demonstrates a company’s commitment to data protection and privacy. It helps build trust with customers, clients, and business partners, as they feel more confident that their personal information is being handled securely & transparently. Demonstrating a strong commitment to data protection can enhance a company’s reputation & competitiveness.
  • Access to EU Market: Compliance with GDPR is crucial for companies that want to do business in the European Union or target EU customers. Non-compliance can result in restrictions and barriers to accessing the EU market, limiting growth opportunities.
  • Global Data Protection Standards: GDPR has set a precedent for data protection regulations worldwide. Now almost all countries & regions have adopted or are in the process of adopting similar data protection laws. By complying with GDPR, companies can align their data handling practices with evolving global standards and facilitate compliance with other data protection regulations.

Tips To Overcome GDPR Challenges

Tips To Overcome GDPR ChallengesGiven below are some tips and steps that companies must follow to overcome GDPR Challenges:

  • Data Mapping and Inventory: Understand what personal data the company collects, stores, processes, and who has access to it. Conduct a thorough data mapping exercise and maintain an inventory of personal data to ensure comprehensive compliance.
  • Privacy by Design and Default: Incorporate privacy considerations into the company’s systems, processes, and services from the outset. Implement privacy-friendly default settings and adopt privacy-by-design principles to minimize data protection risks.
  • Consent Management: Obtain valid and explicit consent from individuals before collecting and processing their data. Ensure clear and specific consent statements, allowing individuals to understand the purpose and scope of data processing. Establish mechanisms to manage and document consent effectively.
  • Data Subject Rights: Implement procedures to address individuals’ rights under GDPR, such as the right to access, rectify, erase, and restrict the processing of their data. Establish processes to handle data subject requests promptly and ensure compliance with the timelines defined by GDPR.
  • Data Security and Breach Response: Implement robust data security measures to protect personal data from unauthorized access, disclosure, and loss. Conduct regular security assessments, train employees on data security best practices, and have a clear incident response plan in place to address data breaches promptly and effectively.
  • Vendor Management: Assess the data protection practices of third-party vendors and ensure they comply with GDPR. Implement data protection agreements and due diligence processes when engaging with vendors to ensure they handle personal data in a GDPR-compliant manner.


In conclusion, GDPR compliance is crucial for companies handling personal data, both within and outside the EU. By adhering to GDPR’s requirements, companies can protect individuals’ privacy, build trust, and avoid legal consequences. To overcome the challenges of compliance, it is essential to raise awareness, conduct data assessments, implement data protection measures, and stay updated with evolving regulations. Seeking legal guidance or consulting with data protection experts can provide valuable assistance in navigating the complexities of GDPR compliance.

If you are looking to implement any of the Infosec compliance frameworks such as SOC 2 complianceHIPAAISO 27001, and GDPR compliance, Impanix can help. Book a Free consultation call with our experts or email us at  [email protected] for inquiries.