2018 saw the internet flooded with news, articles, and press releases on GDPR. However, over 27% of global companies have not even started implementing the law, as per a Trust Arc survey. 20% of companies think that they are ready. In this article at FRESHCODE, Marina Danilova reveals how the world is doing after the GDPR implementation.
The After-Picture of GDPR
EU’s General Data Protection Regulation or GDPR came into effect on May 25th, 2018. Though the percentages are far from impressive, 93% of the respondent companies believe to hit the GDPR benchmark in 2019. The actual reasons for the compliance are customer trust, corporate ethics, partnerships, and evading penalties.
China, Brazil, and California, USA, became among the first countries to adopt GDPR. Meanwhile, some US-based companies restricted EU citizens from accessing their sites. As users were unsubscribing from email newsletters, companies lost 80% of their email marketing list. A The7Stars survey announced that the third of the UK citizens wanted to comply with the GDPR laws. This proved costly for 78% of British companies.
Nevertheless, as EU citizens could deny third-party services, they experienced improved website loading time. They consented to share their personal details directly to the companies to get customized experiences in return. The parcel volume for UK Royal Mail reduced by 6% followed by 7% of its revenue stream. Businesses simply did not want to cough up penalties by sending unrequested letters.
Who Got Burned?
The penalty for non-compliance is up to 4% of worldwide turnover or 20 million euros, whichever is greater, for businesses. There were several lawsuits against Google, Facebook, Instagram, and WhatsApp. Privacy rights activist Max Schrems filed a lawsuit against these companies. If he wins, his bank balance can increase to a whopping $8.8 billion. Google and Facebook are battling his claims of privacy issues.
One of the GDPR laws says that businesses must inform users within 72 hours of the data breach. Ticketmaster might be the first company to pay the price for failing to disclose data leak of 40,000 global users.
It can be safely said that companies are struggling to cope with EU law even now. The good news is, most are prepping up for it.
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