What is GDPR? - Definition & Meaning
GDPR mandates how organizations collect, process, and protect EU citizens' personal data, with fines up to 4% of global revenue for non-compliance.
GDPR (General Data Protection Regulation), known in the Netherlands as AVG (Algemene Verordening Gegevensbescherming), is the European privacy legislation that has been in effect since May 25, 2018. It regulates how organizations must collect, process, and protect personal data of EU citizens.

What is GDPR?
GDPR (General Data Protection Regulation), known in the Netherlands as AVG (Algemene Verordening Gegevensbescherming), is the European privacy legislation that has been in effect since May 25, 2018. It regulates how organizations must collect, process, and protect personal data of EU citizens.
How does GDPR work technically?
The GDPR imposes strict requirements on data processing: privacy by design and privacy by default must be built into software architecture. Organizations must have a legal basis for data processing (e.g., consent, legitimate interest, contractual necessity), maintain a processing register, conduct Data Protection Impact Assessments (DPIAs) for high-risk processing, and report data breaches to the supervisory authority within 72 hours. Technical measures include data encryption (AES-256), pseudonymization, access control (RBAC), audit logging, the right to be forgotten (data deletion), data portability (export in machine-readable format), and cookie consent management. Violations can result in fines up to 20 million euros or 4% of global annual revenue.
How does MG Software apply GDPR in practice?
MG Software builds GDPR-compliant software by treating privacy by design as a core principle. We implement data encryption, access control, audit logging, cookie consent management, and the right to be forgotten in every application that processes personal data.
Why does GDPR matter?
GDPR compliance is not just a legal obligation but also a competitive advantage. Customers and partners increasingly choose organizations that demonstrably handle personal data with care. Non-compliance brings not only significant fines but also reputational damage.
What are some examples of GDPR?
- A SaaS platform displaying a cookie consent banner compliant with GDPR, giving users granular control over which cookies are placed before any tracking begins.
- A customer portal offering a "delete my account" function that allows users to have all their personal data erased in compliance with the GDPR right to be forgotten.
- A healthcare application storing personal data encrypted (AES-256), implementing role-based access control, and logging all data processing activities for GDPR compliance audits.
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