The importance of the regulation of personal data protection as a factor of business competitiveness

The digitalization of markets and the increasing flow and speed of commercial traffic make personal data and its protection an essential element when doing business. Due to the enormous circulation of personal data, its exposure through social networks and the risks of its misuse (cybersecurity crimes, obtaining sensitive information by third parties and monetization by companies), today, both its circulation -to benefit digital commerce- and protection are regulated, as it is a fundamental right.

Thus, in the world’s largest market, the single market of the European Union, with almost 450 million people, data is protected by the Reglamento General de Protección de Datos Personales (General Personal Data Protection Regulation) “GDPR” (2016/679 of April 2016).

This regulation is, as of today, the top personal data protection regulation, as it lays down several rights and obligations for data processing, the breach of which leads to fines of up to 20 million euros. Today, the EU has collected a not inconsiderable 1.1 billion euros in 2021, confirming a progressive increase since its application as of 2018. 

An aspect worth bearing in mind when thinking about a business with projection to the European market, is that the current regulation protects the personal data of individuals residing in the EU in the case of offering goods or services to such interested parties, even if the company is not based in this territory. 

That is why any company aimed at this market requires a solid adaptation to its regulation, which will not only allow it to comply with the current parameters and avoid penalties, but will give added value to the provision of a good or service, guaranteeing the customer the protection of privacy as a fundamental right.