Compliance Guide: Comparing GDPR & SOC 2 (Updated 2025)
What is SOC 2? What are the similarities and differences between it and the GDPR? And does your organisation need to ensure it is compliant with both?
The General Data Protection Regulation (GDPR) isn’t the only data protection standard in town. You’ll probably be aware that some are mandatory and others are voluntary. So where does SOC 2 figure?
What is SOC 2?
Service Organization Control 2 (SOC 2) is a framework developed by the American Institute of CPAs (AICPA) for service organisations. It sets out how companies should manage their customer data.
Does SOC 2 only apply in the US?
No. It is true that SOC 2 is widely recognised in the US (it is a US framework, after all) and that ISO 27001 may be the more commonly adopted standard in Europe. Yet, UK and European companies often seek SOC 2 compliance as a statement of their approach to information security. If they also trade with the US, SOC 2 compliance can also benefit in terms of immediate recognition.
What is GDPR?
The General Data Protection Regulation (GDPR) is a legal framework created by the European Union to protect the personal data and privacy of individuals within the EU and EEA. It governs how organizations collect, process, and store personal data, aiming to give individuals greater control over their information while ensuring transparency and accountability in data handling.
To whom does GDPR apply?
GDPR applies to any organization (regardless of location) that processes the personal data of individuals in the EU or EEA. This includes businesses, public bodies, and third parties that manage or analyze such data. Whether a company is based in Europe or operates from abroad, if it handles EU residents’ data, it must comply with GDPR.
Similarities between GDPR and SOC 2
Focus on Data Protection and Privacy
Both GDPR and SOC 2 emphasise the importance of safeguarding sensitive data. GDPR is a comprehensive regulation aimed at protecting personal data and ensuring individuals’ privacy rights. SOC 2 evaluates the controls in place for the security, availability, processing integrity, confidentiality, and privacy of customer data in service organisations.
Transparency and Accountability
GDPR enforces the principle of accountability, requiring organisations to demonstrate compliance with its provisions. SOC 2 also emphasises transparency and accountability by requiring service organisations to provide evidence of their controls through independent audits.
What Are The Differences between GDPR and SOC 2?
Scope and Applicability
GDPR applies to any organisation that processes the personal data of EU residents, regardless of the processing organisation’s location. It is primarily focused on protecting the rights of individuals.
SOC 2, on the other hand, is designed to inspire trust in the way a service organisation stores, processes, or transmits customer information when conducting its services. Whilst it would, for example, apply to an accountancy firm, payroll provider, recruitment company, or law firm, SOC 2 (and the protections it offers) would not apply to a company selling physical products.
Risk Management and Assessment
The frameworks take slightly different approaches to assessing risk. SOC 2 is squarely risk-based, requiring service organisations to identify and manage risks to their information systems.
GDPR requires organisations to assess risk from the perspective of data subjects’ rights and freedoms and then take appropriate measures to mitigate those risks.
Regulation vs Framework
A crucial difference between SOC2 and GDPR is their enforceability. GDPR is a legal regulation enforced by governmental bodies, with legal obligations and potential fines for non-compliance. There’s nothing voluntary about it. Whatever your business and wherever you operate, if you process the data of EU residents, you are bound by it.
SOC 2, on the other hand, is a standard or framework to which companies can voluntarily commit. Although widely recognised and adopted, compliance with SOC 2 is not a legal requirement.
Which compliance?
Navigating the compliance landscape requires a nuanced understanding of the similarities and differences between GDPR, SOC 2 and other regulations and standards. Compliance with any standard can be arduous, and no company should assume that complying with one standard will deliver compliance with all (because it most certainly won’t).
With the right support, however, businesses can understand which standard to meet and tailor their actions accordingly.
SOC 2 and GDPR, for example, both emphasise data protection but differ in scope and applicability. We recommend that any organisation that processes the personal data of EU residents prioritise GDPR compliance. Service organisations may then choose to adopt SOC 2 further to demonstrate their commitment to security and privacy best practices.
GDPRLocal can help ensure you comply with the data protection legislation and standards of all the territories in which you trade. Get expert help in managing your data protection here, appoint your Article 27 GDPR rep, or call +44 1772 217800.
FAQs:
Is SOC 2 legally required?
No, SOC 2 is not a legal requirement. It is a voluntary framework developed by the American Institute of CPAs (AICPA) for service organizations to demonstrate their commitment to data security and privacy. While not mandatory, many companies comply with SOC 2 to build trust with clients and business partners, mainly when operating in or trading with the US.
What happens if a company fails to comply with SOC 2 or GDPR?
Failing to comply with SOC 2 may not carry legal penalties, but it can seriously impact a company’s reputation, client trust, and competitiveness, particularly in sectors where data-handling standards matter. In contrast, failing to comply with GDPR can lead to severe consequences, including regulatory investigations, fines of up to €20 million or 4% of global turnover (whichever is greater), and potential legal action. GDPR is a binding regulation with strict enforcement by supervisory authorities.
Does GDPR compliance mean SOC 2 compliance (or vice versa)?
No, complying with GDPR does not automatically mean you comply with SOC 2, and vice versa. While both standards emphasize data protection and accountability, they differ significantly in scope, approach, and requirements. GDPR is a legally enforced regulation focused on protecting individuals’ rights and personal data, whereas SOC 2 is a voluntary framework focused on evaluating internal controls related to data management and service operations.
Can companies comply with both GDPR and SOC 2 at the same time?
Yes, companies can comply with both GDPR and SOC 2 simultaneously. Many service organizations, particularly those handling the personal data of EU residents, choose to pursue both to cover their legal obligations under GDPR and demonstrate best practices in data security through SOC 2. While the two standards don’t overlap entirely, aligning with both provides a more comprehensive and credible approach to data protection.