GDPR vs DPDP Act: Key Differences Enterprises Should Know

Companies that operate throughout India and the EU are facing mounting pressure regarding GDPR compliance and a re-examination of their compliance with India’s Digital Personal Data Protection (DPDP) Act. Although both the GDPR and the DPDP Act are aimed at privacy, accountability and security, their scopes, rights, penalties, and the application of such rules differ. By understanding how these two regulations differ, IT leaders can build a more robust governance framework and mitigate some regulatory risk.

Scope: Global vs India-Centric

Both pieces of legislation address the protection of personal information; however, the scope of application is markedly distinct:

  1. GDPR applies to any business processing the data of an individual who resides in the EU, regardless of the company’s operations.

  2. However, DPDP will only apply to the processing of data relating to an individual citizen of India that occurs within India and outside of the country, but (therefore) will have a much wider reach into countries outside of India than what is made available under GDPR.

Additionally, GDPR data protection has two categories of data (i.e., “personal” and “sensitive”). In contrast, DPDP will not classify sensitive data; instead, it will classify all data on a common (i.e., uniform) basis.

Individual Rights: Similar Intent, Different Depth

Both GDPR and DPDP provide individuals with control over their data, but each has a different scope of coverage.

GDPR has seven rights granted to individuals:

1. Right of Access

2. Right of Rectification

3. Right of Erasure

4. Right of Data Portability

5. Right to Restrict Processing

6. Right to Object

DPDP provides the following four rights for individuals:

1. Right of Access

2. Right of Correction

3. Right of Erasure

4. Right of Grievance Redressal

DPDP has combined these four rights into a single, simplified right to make enforcement easier for consumers. In contrast, GDPR provides a granular level of control over rights that is more appropriate for mature privacy regulatory systems.

Penalties: High Stakes for Non-Compliance

  1. The penalties for violating the Digital Personal Data Protection Act (DPDP) are severe; they could amount to ₹250 crore per instance. The DPDP is one of the most stringent data protection laws throughout Asia.

  2. GDPR mandates fines up to €20 million or 4% of global annual turnover, whichever is higher.

Both legal frameworks require businesses to implement strict security measures, monitor compliance on an ongoing basis, and demonstrate compliance.

DPDP vs GDPR: Enterprise Key Takeaways

  1. The GDPR defines personal data more broadly and imposes stricter consent requirements.

  2. The DPDP Act focuses on simplicity, digital operations, and holding data fiduciaries accountable.

To summarise: Develop a Single and Effective Approach to Data Protection

Organisations operate in an ever-evolving world of rules regarding the use of personal data. For an organisation to manage its data, identities, and cyber risk holistically, it will require modern AI-enabled tools and technologies.

Seqrite provides enterprise-level data protection tools that can help you achieve compliance with the GDPR (General Data Protection Regulation) and DPDP (Digital Personal Data Protection) as well as increase your organisation’s overall cyber resilience.

Start your search for Seqrite’s enterprise-class security solutions so that you can safeguard your data while simultaneously achieving regulatory compliance.


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