GDPR privacy sanctions and regulatory compliance risks

Under the General Data Protection Regulation (GDPR), companies face significant financial risks for privacy violations. Sanctions are not limited to multinational corporations but also affect large companies, social cooperatives, public administrations, and state-owned enterprises.

Article 83 of the GDPR establishes a two-tier penalty system. For less severe violations, fines can reach up to €10 million or 2% of a company’s total annual global turnover. For more serious violations—such as those involving fundamental processing principles, consent conditions, or data transfers to third countries—fines can rise to €20 million or 4% of total annual global turnover.

Determining the final amount is not a mechanical process. Authorities evaluate several criteria, including the nature, gravity, and duration of the violation, whether the act was intentional or negligent, the measures taken to mitigate damage, and the level of cooperation with the regulatory body.