GDPR Fines – Frequently Asked Questions

What are GDPR fines?

GDPR fines are administrative penalties imposed by data protection authorities for non-compliance with the General Data Protection Regulation. These penalties have changed the data privacy landscape, with some GDPR fines reaching unprecedented levels.

What is the maximum GDPR fine?

Under the General Data Protection Regulation (GDPR), the highest penalties can reach up to €20 million or 4% of the annual worldwide turnover from the previous fiscal year, whichever is greater. This applies to the most severe breaches of the regulations.

Does this mean there’s no upper limit to GDPR fines?

Theoretically, there is no upper limit to the maximum amount of the fine that can be imposed, as it is equivalent to 4% of the organisation’s global turnover of the preceding fiscal year, or up to €20 million, depending on which amount is considered to be higher.

Is the GDPR fine structure two-tiered?

Yes. The General Data Protection Regulation (GDPR) has established a two-tiered system of fines to ensure companies take data protection seriously. This structure allows for different penalties to be applied based on the severity of the violation.

What violations fall under the lower tier?

Lower-tier violations typically include:

• Failures to meet certain administrative requirements

• Not properly documenting data processing activities

• Failing to appoint a data protection officer when required

• Collecting personal data of children without parental consent

• Failing to maintain records of data processing activities

• Not notifying authorities or users about a data breach

• Neglecting to perform a data protection impact assessment

What violations fall under the higher tier?

Higher-tier violations typically include:

• Processing personal data without a legitimate purpose

• Failing to obtain proper consent for data processing

• Not respecting data subjects’ rights (e.g., right to erasure)

• Transferring personal data to a third country without adequate safeguards

• Violating the basic principles of data processing

• Breaching conditions for consent

• Infringing on data subjects’ rights

What are the key factors that influence GDPR fine calculation?

The regulatory authorities consider multiple factors when determining GDPR fines, including:

• Nature and gravity of the infringement

• Scope and purpose of the processing

• Whether the violation was intentional or negligent

• Actions taken to mitigate damage

• The company’s track record of compliance

• Number of affected individuals and damage caused

How does the nature and gravity of the infringement affect the fine?

The nature and gravity of the infringement play a crucial role in determining the amount of the fine. For instance, a massive data breach that exposes sensitive personal information of thousands of users is likely to result in a higher fine than a minor violation with limited consequences.

Does intentionality affect GDPR fine amounts?

Yes. Whether the infringement was intentional or the result of negligence is evaluated by the authorities. Intentional violations, where a company knowingly disregards the law, are typically viewed more seriously and may result in more severe penalties, including higher fines. For example, if senior management authorised unlawful processing despite being aware of the risks, it would be considered an intentional infringement.

Can negligent violations result in significant fines?

Yes. Negligent infringements, while potentially less severe than intentional ones, can still result in significant fines. These might include cases where a company failed to implement adequate data protection policies or neglected to provide proper training to employees handling personal data.

What mitigating actions can reduce GDPR fines?

Data protection authorities consider any actions taken by the data controller or processor to mitigate the damage suffered by data subjects. Swift and effective measures can potentially reduce the amount of the fine, such as:

• Promptly notifying affected individuals

• Offering support services

• Implementing additional security measures to prevent future incidents

Does previous compliance history matter?

Yes. A company’s track record of compliance with the GDPR is a critical factor in determining fines. Previous infringements, especially those related to similar issues or occurring recently, are likely to be considered aggravating factors. Repeated violations may indicate a lax attitude towards data protection and could result in higher fines.

Is the lack of previous violations considered a mitigating factor?

No. The absence of previous infringements is not considered a mitigating factor, as compliance with GDPR is expected to be the norm. Organisations are expected to demonstrate an ongoing commitment to data protection and to take proactive measures to ensure compliance.

What is the largest GDPR fine on record?

The largest GDPR fine was imposed on Meta Platforms Ireland Limited in May 2023. The Irish Data Protection Commission fined the tech giant a staggering €1.2 billion for transferring European users’ personal data to the United States without adequate protection mechanisms in place.

What other major GDPR fines have been issued?

Some of the highest GDPR fines recorded include:

• €1.2 billion for Meta

• €746 million for Amazon

• €345 million for TikTok

• €290 million for Uber

• €265 million for Meta (second fine)

• €225 million for WhatsApp

Is there a trend in the amounts of GDPR fines?

Yes. There has been a clear trend of increasing fine amounts over time. In the early days of GDPR enforcement, fines were relatively modest. However, as data protection authorities have become more confident in their enforcement roles, the frequency and severity of fines have increased significantly.

What was one of the first GDPR fines?

In 2018, German chat app Knuddels faced one of the first GDPR fines, amounting to just €20,000, after a security breach exposed the personal data of 300,000 users.

What violations can organisations prevent to avoid fines?

Organisations can prevent exposure to GDPR fines by:

• Processing data only in relation to a lawful basis for processing

• Processing data lawfully, fairly and in a transparent manner

• Implementing purpose limitation

• Practising data minimisation

• Ensuring the accuracy of data

• Setting storage limitation timeframes

• Maintaining integrity and confidentiality

• Demonstrating accountability

• Respecting data subjects’ rights (SAR, RTE, etc.)

• Notifying authorities of data breaches

• Having a GDPR compliance framework in place

• Having appropriate cross-border data transfer mechanisms

• Investing in cyber security

• Undertaking a Data Protection Impact Assessment (DPIA) when necessary

• Appointing a Data Protection Officer (DPO) when required

• Assigning an Article 27 Representative

• Constantly updating policies and procedures

• Staying up to date with relevant regulations

What does GDPRLocal emphasise about preventing fines?

Companies have influence in preventing exposure to administrative fines by a relevant data protection authority if they:

• Act in good faith

• Are approachable by the authorities

• Have developed standard operating procedures (SOPs) in addressing data protection compliance and potential risks

What is the overall message from GDPR fines?

GDPR fines are designed to encourage businesses to take data protection seriously and implement robust measures to safeguard personal information. Compliance with GDPR is not optional, and the consequences of non-compliance can be severe. Data protection authorities are sending a clear message that compliance is a fundamental responsibility.

Why have GDPR fines been increasing?

As data protection authorities have become more confident in their enforcement roles, they have shown increased willingness to impose substantial penalties to ensure compliance. The trend indicates that authorities are taking GDPR violations increasingly seriously.

What should organisations do to stay ahead of GDPR enforcement?

To stay ahead of the curve, companies must:

• Continually assess their data practices

• Invest in robust security measures

• Foster a culture of privacy awareness

• Implement proactive data protection measures

• Maintain consistent compliance practices