The EU’s General Data Protection Regulation (GDPR) has reshaped how businesses handle personal data — and the consequences for non-compliance are significant. Whether you're already operating in Europe or planning to expand, understanding the risks of falling short on GDPR is essential. This blog outlines five major risks your organization could face if it isn’t fully compliant.
1) Hefty Fines
There are two tiers of fines:
- Up to €10 million or 2% of global annual revenue for less serious violations, such as improper data handling by controllers or processors.
- Up to €20 million or 4% of global revenue for serious breaches, like violating core data protection principles, failing to get proper consent, or unlawfully transferring data outside the EU.
Fines are assessed based on the nature and severity of the breach, and companies may also be liable for compensation claims from individuals whose rights were affected.
2) Legal Liability
Failing to comply with GDPR can lead to serious legal consequences beyond regulatory fines. Individuals have the right to sue for both financial and emotional harm caused by a data breach. This can result in class-action lawsuits, high legal defence costs, and court-ordered compensation to affected individuals.
Violations of key rights - such as the right to access, rectify, or erase personal data - are often the basis for these lawsuits. With growing awareness and support from privacy advocacy groups, more individuals are taking legal action against non-compliant companies. Legal proceedings can be lengthy and expensive, adding significant financial and reputational strain to businesses already under scrutiny.
3) Lost Deals
GDPR non-compliance can lead to audits, investigations, and serious reputational damage, which in turn can erode trust with clients, partners, and stakeholders. Regulators like the ICO (UK), CNIL (France), and DPC (Ireland) may launch formal inquiries, often disrupting business operations.
If violations are found, authorities can impose processing bans, operational restrictions, or demand costly remediation efforts. This loss of credibility can drive away key business partners, delay contracts, and deter new clients - especially in sectors that prioritize data security, like tech, finance, and healthcare. In a competitive market, the perception of being careless with personal data can be just as damaging as the penalties themselves.
4) Website Blocks & Restrictions
If a business seriously violates GDPR, EU regulators have the power to suspend or restrict data processing, which can include blocking website access within the EU. Under Article 58 of the GDPR, supervisory authorities can issue orders to temporarily or permanently halt data operations, especially if users' personal data is being mishandled.
This may include geo-blocking your website in the EU or banning specific services that rely on unlawful data processing. For companies operating globally, this can mean losing access to the entire European market, impacting visibility, sales, and growth.
5) Brand Image
A GDPR violation can seriously damage your brand reputation, often drawing negative media attention and shaking the trust of consumers and partners. Trust is lost quickly, and rebuilding it can take years. Even without a fine, the public perception of being careless with personal data can drive people away.
According to Cisco’s 2023 Data Privacy Benchmark Study, 94% of customers say they won’t buy from a company that doesn’t properly protect their data. This highlights how deeply privacy influences both consumer choices and B2B relationships. Additionally, Deloitte reports that reputation loss is one of the top three consequences of a data breach, often leading to significant loss of customers and clients across both B2C and B2B sectors. Once trust is broken, clients often move their business to more secure and compliant competitors.
Final Thoughts
GDPR non-compliance exposes your business to serious risks - from hefty fines and costly legal battles to lost clients, operational restrictions, and lasting damage to your brand reputation. These consequences not only drain resources but can also shut down your access to the profitable European market. With privacy expectations higher than ever, and regulators more vigilant, ensuring your GDPR compliance is not just a legal necessity but a critical business advantage.
Don’t wait until it’s too late. Get compliant today with EuroDev - your trusted partner in navigating GDPR requirements efficiently and confidently, so you can protect your business, build customer trust, and thrive in Europe’s data-driven economy. Schedule a meeting with the expert today - Book a Meeting.
