General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) is the European Union’s comprehensive framework for protecting personal data. Effective since May 25, 2018, it standardizes data protection across EU and EEA member states and gives individuals stronger control over how their personal information is collected, processed, stored and transferred.

Key takeaways

• GDPR sets strict rules for lawful processing, consent, transparency and accountability.
• It applies to organizations inside and outside the EU when they process the personal data of people in the EU.
• Individuals have rights such as access to their data and the right to have it erased.
• Organizations must implement safeguards (e.g., anonymization or pseudonymization), assess risks, notify data breaches, and, in many cases, designate a Data Protection Officer (DPO).
• Compliance can require significant administrative and technical measures and affect cross‑border data transfers.

Core provisions

• Lawful basis for processing: Personal data may be processed only when a lawful basis exists (for example, consent, contract performance, legal obligation, vital interests, public task, or legitimate interests).
• Consent: Consent must be informed, specific, freely given and unambiguous (typically via a clear affirmative action).
• Transparency: Organizations must inform individuals about what data is collected, why, how it is used, and how long it is retained through clear privacy notices.
• Individual rights: Individuals can request access to their data, correction, erasure, restriction of processing, data portability, and can object to certain processing (including profiling and direct marketing).
• Data protection by design and by default: Privacy risks must be considered from the outset of systems and services.
• Pseudonymization and anonymization: Where possible, organizations should render personal data anonymous or pseudonymize it to reduce risks.
• Data breach notification: Organizations must notify supervisory authorities (and, in certain cases, affected individuals) promptly when breaches occur.
• Data Protection Officer (DPO): Public authorities and organizations that process large volumes or special categories of data may need to appoint a DPO or otherwise ensure someone is responsible for compliance.
• Records and accountability: Controllers and processors must maintain records of processing activities and demonstrate compliance.

Scope and applicability

• Territorial reach: GDPR applies to controllers and processors established in the EU/EEA and to organizations outside the EU that offer goods or services to, or monitor the behavior of, individuals in the EU.
• Coverage of data types: It protects personal data broadly defined and includes employee HR records and other non‑customer data.
• Cross‑border transfers: Transfers of personal data outside the EU are allowed only where adequate safeguards are in place (e.g., adequacy decisions, standard contractual clauses, binding corporate rules).

What businesses must do

Practical steps organizations typically take to comply:
* Conduct a data inventory and map processing activities.
* Identify lawful bases for processing and update privacy notices.
* Implement technical and organizational security measures.
* Use anonymization or pseudonymization where appropriate.
* Perform Data Protection Impact Assessments (DPIAs) for high‑risk processing.
* Establish procedures for handling data subject requests and breach notifications.
* Review and update contracts with processors and third parties.
* Consider appointing a DPO and train staff on data protection obligations.

Challenges and criticisms

• Administrative burden: Assessing DPO requirements, maintaining records, and ongoing compliance can be resource‑intensive.
• Ambiguity: Some provisions (for example, handling of employee data) leave room for interpretation, complicating implementation.
• Business disruption: Restrictions on international transfers and required safeguards can affect operations and increase costs.
• Enforcement consistency: Questions remain about consistent interpretation and application across jurisdictions.

FAQs

Q: Who is covered by GDPR?
A: Individuals in the EU/EEA are protected. The regulation also applies to organizations outside the EU that target or monitor people in the EU.

Q: When did GDPR come into effect?
A: GDPR became enforceable on May 25, 2018.

Q: What is a Data Protection Officer?
A: A DPO oversees data protection strategy and compliance and is required for certain public bodies and organizations that carry out large‑scale or sensitive processing.

Q: How can organizations begin compliance?
A: Start with a data inventory, update privacy notices, assess legal bases for processing, implement security measures, and develop procedures for data subject rights and breach response.

Bottom line

GDPR fundamentally shifted how organizations handle personal data by prioritizing transparency, individual rights and accountability. Its wide territorial scope means many businesses worldwide must meet EU standards for data protection, requiring both technical safeguards and ongoing organizational processes.

Further reading

• European Council — The General Data Protection Regulation
• GDPR.eu — Key articles and recitals on consent, DPOs, data breaches, employment processing and lawfulness of processing