The General Data Protection Regulation (GDPR) is a European Union law enacted in May 2018. It sets strict rules for how organizations collect, process, and store personal data of individuals within the EU. GDPR applies to all businesses—regardless of location—that handle the data of EU citizens. It replaces the older Data Protection Directive and aims to harmonize data privacy laws across Europe.

Why It Matters

GDPR places individuals at the center of data privacy. It gives people greater control over their personal data through rights like access, rectification, erasure (“right to be forgotten”), and data portability. For organizations, non-compliance can result in substantial fines—up to €20 million or 4% of global annual revenue, whichever is higher. Beyond penalties, GDPR compliance builds trust and enhances brand reputation in a privacy-conscious market.

Key Requirements for Compliance

To comply with GDPR, businesses must gain explicit consent before collecting data, provide clear privacy notices, ensure data is accurate and up-to-date, and implement appropriate security measures. They must also report data breaches within 72 hours and appoint a Data Protection Officer (DPO) in certain cases. Privacy by design and by default are required, meaning data protection must be integrated into systems from the start. Companies must also maintain records of processing activities and perform Data Protection Impact Assessments (DPIAs) for high-risk operations.