What You Should Know about the EDPB’s Guidelines on Calculation of Administrative Fines under the GDPR

This whitepaper will provide you with:

  • A thorough explanation of the process established by the European Data Protection Board to calculate GDPR fines;
  • Insights into how various factors can influence the amount of the fine, such as the company's intent, previous infringements, efforts to mitigate damage, etc;
  • Practical and actionable recommendations for how organizations can ensure their data protection strategies comply with the GDPR's requirements.

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The General Data Protection Regulation (GDPR) is considered the most comprehensive data privacy and protection regulation globally. It has served as the blueprint for numerous similar regulations worldwide, resulting in users online gaining better control over their privacy and data. Among the various reasons behind its effectiveness is the financial repercussions of non-compliance. Entities found guilty of violating the GDPR can expect millions, along with the reputational harm and loss of customer confidence.

The European Data Protection Board (EDPB) recently released its detailed guidelines on the framework for calculating these fines. While its main purpose is to harmonize the methodology used by various data protection agencies across the EU in levying fines for GDPR violations, it can also be helpful for companies wishing to gauge the financial risks of inadequate data protection practices.

Securiti's whitepaper summarizes and expands on the EDPB's comprehensive guidelines, which can help organizations understand the minutia of the fine calculation methodology and mitigate the financial impact of potential non-compliance.

EDPB’s Guidelines

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Frequently Asked Questions Related to the EDPB Guidelines

Here are some of the most commonly asked questions related to the EDPB guidelines on the calculation of fines under the GDPR:

Per the guidelines, the starting point for GDPR infringements will be based on factors such as the seriousness of the violation, the company's turnover, the severity of the violation, and whether the offender is a repeat offender. This approach ensures the fines are both effective and proportional. Additionally, these guidelines allow for the harmonization of fine calculations by various supervisory authorities across the EU by establishing clear parameters on what factors should be considered and their influence over the fine amounts.

While the guidelines provide a standardized approach to calculating fines, the supervisory authorities retain a degree of discretion, particularly in instances where national laws may also influence the eventual fine amounts. This allows for adjustments on the basis uniqueness of each case and jurisdictional requirements while also ensuring the fine's effectiveness, proportionality, and dissuassiveness as required per the guidelines.

The EDPB's guidelines were developed on the basis of an inclusive approach where feedback from public consultation was duly incorporated into the final version of the guidelines. The stakeholders that contributed with their feedback include legal professionals, public authorities, corporations, and members of the public. All their input is reflected in the final version, addressing practical concerns and issues related to applicability and clarity as raised in the consultation phase.

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