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The General Data Protection Regulation (GDPR) is one of the world’s most influential data protection laws. It applies to organisations that are handling the personal data of EU citizens, regardless of where the company is located. In this blog, we’ll explore Who Does GDPR Apply To, covering businesses within the EU and those based outside the EU that process EU citizens' data.
Whether you are a small business owner or a multinational corporation, understanding Who Does GDPR Apply To and its scope ensures compliance and protects individuals' privacy rights. Let’s break it down simply so you know exactly where your business stands.
Table of Contents
1) What is GDPR?
2) Who Does GDPR Apply To?
3) Who Does the GDPR Not Apply To?
4) Does GDPR Extend to Both the EU and EEA?
5) Is GDPR Applicable Beyond Europe?
6) What Does It Mean to Offer Goods and Services to EU Citizens?
7) Who is Responsible for the Enforcement of the GDPR?
8) What is an Example of a Data Breach Under the GDPR?
9) Who is Covered by GDPR?
10) Conclusion
What is GDPR?
The General Data Protection Regulation (GDPR) is defined as a data privacy law introduced by the European Union (EU) in 2018. It is designed to give individuals more personal data control and to ensure the responsible handling of organisation data. It primarily applies to all companies that collect or process the EU citizens' personal data, regardless of the company location.
For example, if a company collects your email address for a newsletter, GDPR requires it to clearly explain its data usage and consensual rights. GDPR Data Breach incidents often highlight what can go wrong when such protocols are not properly followed. If you later ask them to delete your data, they must comply. Failure to follow these rules can lead to heavy fines, with penalties reaching up to 4% of a company’s global revenue.
Who Does GDPR Apply To?
The General Data Protection Regulation (GDPR) applies broadly to organisations that perform data collection and handling, regardless of their location. They are primarily applied to,
1) Organisations based in the EU handle personal data, regardless of where the data is processed.
2) Outside the EU organisations if they offer goods or services to or monitor the EU individual's behaviour.
3) Organisations within the European Economic Area (EEA) countries.
4) Non-EU businesses that perform data tracking, analysis, and storing related to EU or EEA residents.
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Who Does the GDPR Not Apply To?
While GDPR has a broad scope, there are specific situations where it does not apply. These exceptions are important to understand to avoid misinterpretation of the law.
1) EU Citizens Living in the US: Article 3 of GDPR law refers to these citizens as “data subjects in Union”. So, if an EU citizen is living in the US, and a company collects personal data of such citizens living in the US, the GDPR does not apply to them.
2) Personal or Household Data Processing: The GDPR does not apply to data processing carried out by individuals purely for personal or household activities.
3) Law Enforcement and National Security Activities: Law enforcement activities that fall under specific national security exemptions are not covered by the GDPR.
Does GDPR Extend to Both the EU and EEA?
Yes, GDPR applies consistently to both the European Union (EU) and the European Economic Area (EEA) for regional data protection. These include:
1) All EU member states (27 countries).
2) EEA countries, which include:
a) Iceland
b) Norway
c) Liechtenstein
Is GDPR Applicable Beyond Europe?
Yes, GDPR’s scope extends beyond Europe. GDPR applies to every cloud-hosted company that processes EU citizens’ data whether the company is EU-based or not.
This extraterritorial applicability means that any company in the Asia, United States, and other regions must comply with GDPR if they handle EU citizens' data.
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What Does It Mean to Offer Goods and Services to EU Citizens?
Offering goods and services to EU citizens involves actions or intentions that target EU individuals. Below are some examples of what this includes:
1) Offering Goods and Services to the EU Citizens
Even without direct commercial activities, the intention to serve EU citizens can trigger GDPR compliance. Here are some of the notable examples:
a) If a company’s website displays any EU member state currency (since not all EU countries use the EUR)
b) If a company’s website is available in the language of an EU member state
c) If the company ships goods to the EU
2) Monitoring the Behaviour of EU Citizens
Online EU citizen behaviour tracking also falls under GDPR. For example, if a company uses cookies or performs IP address tracking for visitors from EU countries, it must comply with GDPR regulations.
Who is Responsible for the Enforcement of the GDPR?
GDPR enforcement is being performed by the Data Protection Authorities (DPAs) in each of the participating countries. These authorities are responsible for performing compliance within their respective jurisdictions. Here are some key examples:
1) Cyprus: The Commissioner for Personal Data Protection (CPDC) acts as the Cyprus’s Data Protection Authority (DPA).
2) Hungary: The Hungarian National Authority for Data Protection and Freedom of Information enforces data protection laws in the Hungary nation.
3) United Kingdom: The Information Commissioner’s Office (ICO) is responsible for enforcing UK data protection laws.
What is an Example of a Data Breach Under the GDPR?
A data breach example falling under the GDPR could be personal data loss or theft. These include unauthorised sensitive customer information access. This could include physical theft, like a stolen laptop, or digital theft, such as hacking.
Who is Covered by GDPR?
The General Data Protection Regulation (GDPR) applies to all regional organisations and to those outside the EU/EEA. These include those offering goods or services to monitor the EU/EEA resident's behaviour.
Conclusion
Understanding who does GDPR apply to is important in today’s world that grows more and more interconnected with time. Whether you are within the EU or beyond its borders, GDPR’s reach can affect you if you handle EU citizens’ data. This blog has shed light on GDPR's scope and its global implications, ensuring that you are well-prepared to navigate its requirements. It’s about staying compliant, protecting personal data, and embracing the crucial principles of data privacy!
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Frequently Asked Questions
Who is Exempt from GDPR in the UK?
EU citizens living in the US and data processing carried out by individuals purely for household or personal activities are exempt from GDPR in the UK. Additionally, GDPR does not apply to law enforcement activities that fall under specific national security exemptions
Who Can Be Held Liable Under GDPR?
Data Controllers or Processors can be held liable under GDPR that provides the means for processing personal data about the EU. Additionally, Data Protection Officers (DPO) remain liable for non-compliance with general employment, contracts, and civil and criminal rules, as set out by the domestic laws of the relevant member states.
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