Given the GDPR's dramatically expanded
territorial reach, increased suite of individual rights and
potential for hefty penalties, U.S. multinationals must prepare now
to ensure compliance.
On May 25, 2018, the General Data Protection Regulation (GDPR)
goes into effect in the EU, bringing with it a series of
consequences for U.S. multinationals that fail to comply. The GDPR
aims to provide protection for natural persons with regard to the
processing and movement of their personal data. It has an
extraterritorial scope that allows it to reach U.S. companies who
may not even be aware they are subject to its provisions.
Additionally, the GDPR levies two tiers of fines. Noncompliance
with the most stringent requirements results in fines totaling the
greater amount of 4 percent of global annual revenue or €20
million ($23.58 million) and noncompliance with other provisions
results in fines totaling the greater amount of 2 percent of global
annual revenue or €10 million
