GDPR compliance can raise many practical questions, especially around personal data, data collection, organizational responsibilities, and penalties. For businesses that process the personal data of individuals in the EU or EEA, understanding these requirements is essential for protecting privacy and reducing compliance risk.
In this first part of our GDPR FAQ series, we answer five of the most frequently asked questions about GDPR compliance and explain what organizations need to know.
Key Takeaways
- Personal data includes information that can directly or indirectly identify an individual.
- Organizations should determine whether the GDPR applies to their data processing activities.
- Personal data must be processed using an appropriate lawful basis.
- Data controllers and data processors have different responsibilities under GDPR.
- Serious GDPR violations can result in fines of up to €20 million or 4% of worldwide annual turnover, depending on the infringement.
What is GDPR?
Broadly, GDPR compliance requires a company to do the following:
- Data considered “personal” by EU residents must be safeguarded and treated only as authorized;
- The data collected has protected and limited access.
- Specific conditions for the processing of data by third parties must be included in contracts with those parties.
- EU citizens have a wide range of data subject rights, including the right to know what information a corporation has about them and the right to have that information restricted from being processed.
- Additionally, certain rules for reporting data security incidents must be observed.
Three main goals were considered when creating the GDPR standards:
- Create a set of minimal standards for cloud-based companies handling the personal data protection of EU individuals;
- Replace the 1995 Data Protection Directive and the 28 different data privacy laws currently in effect in EU member states with a single privacy law;
- To keep pace with technological advancements in the processing and transmission of personal data, data privacy laws must be updated.
Learn more about how GDPR compliance works, who should comply with it, benefits, violations, and GDPR certification with one of our previously written blogs right here.
5 Most Frequently-Asked Questions About GDPR Compliance
1. How does GDPR define “personal data”?
Any information about a specific or identifiable natural person (sometimes known as a “data subject”) is considered personal data. Numerous bits of information can be used to directly or indirectly identify or locate a data subject. Names, ID numbers, photos, email addresses, bank account information, posts on social networking sites, medical records, and computer IP addresses are a few examples. The term “personal data protection” has a fairly broad definition under data privacy laws.
2. Does my company need to register under the GDPR?
Except for special exemptions, any company, including single proprietors, that handles personal data must register with the ICO (Information Commissioner’s Office) and pay an annual fee.
Your turnover and size determine your charge:
- Tier 1: Micro organizations must pay £40 annually. These organizations must have a maximum annual sales of £632,000 or fewer than 10 employees.
- Tier 2: An annual payment of £60 is required from small and medium-sized businesses (with a maximum annual revenue of £36 million or no more than 250 employees).
- Tier 3: Large organizations (those that don’t fit the requirements for tiers 1 or 2) must pay £2,900.
Registering and complying with GDPR certification requirements shows your business takes data privacy laws and personal data protection seriously.
3. Are there restrictions on the types of data my company can gather, and what are the obligations regarding collection notification?
The processing of personal data must have a legal basis, and GDPR imposes some notification requirements. You should evaluate your obligations under GDPR compliance and determine if legal consultation is necessary. Compliance with data privacy laws ensures that the data subject rights of individuals are upheld. The appointment of a Data Protection Officer (DPO) may be required, depending on the nature of your data processing.
4.What is the difference between a data processor and a data controller?
A controller is an organization that decides the purpose and means of processing personal data. A processor handles the data on behalf of the controller. Controllers are responsible for upholding data subject rights and managing requests for deletion or access to data. Processors support GDPR compliance but do not respond directly to data subjects. Both roles are defined clearly in GDPR certification frameworks, and larger organizations may be required to appoint a Data Protection Officer (DPO) to oversee these responsibilities.
5. What are the penalties for not complying with the GDPR?
Less severe penalties:
Fines up to €10 million or 2% of annual global turnover may be imposed for violations of:
- Article 8 (children’s consent),
- Article 11 (processing without identity),
- Articles 25–39 (general responsibilities),
- Articles 42–43 (certification and certification bodies).
More severe penalties:
Fines up to €20 million or 4% of annual global turnover may be imposed for violations of:
- Article 5 (data processing principles),
- Article 6 (lawfulness),
- Article 7 (consent),
- Article 9 (special data categories),
- Articles 12–22 (data subject rights),
- Articles 44–49 (international transfers).
Working with a partner like Akitra ensures you avoid these risks through continuous monitoring and built-in GDPR compliance support.
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Our solution offers substantial time and cost savings, including discounted audit fees, enabling fast and cost-effective compliance certification. Customers achieve continuous compliance as they grow, becoming certified under multiple frameworks through a single automation platform.
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