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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? - Definition & Meaning

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.

Related terms

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Further reading

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Frequently asked questions

Yes, GDPR applies to all organizations that process personal data of EU citizens, regardless of their size. Small businesses do have some exemptions, such as not being required to appoint a Data Protection Officer (DPO) if data processing is not their core activity.
GDPR has two fine tiers: up to 10 million euros or 2% of global annual revenue for less severe violations, and up to 20 million euros or 4% of annual revenue for serious violations such as breaching the core principles of data processing.
Implement privacy by design, add cookie consent management, build features for the right to access and be forgotten, encrypt personal data, maintain a processing register, and conduct regular DPIAs. MG Software can help you with all of this.

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Related articles

What is GDPR? - Definition & Meaning

GDPR compliance requires privacy by design, consent management, and data protection. Build applications that are regulation-proof from day one.

Privacy Impact Assessment Template - Free Download & Example

Achieve GDPR compliance through structured risk analysis. Privacy Impact Assessment template with data inventory, risk assessment, and compliance safeguards.

What is a VPN? - Definition & Meaning

A VPN encrypts internet connections and protects privacy. This is essential for businesses with remote teams and sensitive company data.

What is Data Privacy? - Explanation & Meaning

Data privacy protects personal information under GDPR, with privacy by design as the starting point for every application processing user data.

From our blog

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