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GDPR: Tech startups, fintech firms with EU exposure to be impacted

GDPR aims to strengthen and protect the data of individuals within the EU and also deals with export of personal data outside the region

Press Trust of India  |  Mumbai 

As the (EU) prepares to implement strict data laws from May 25 to protect its citizens, consumer-driven Indian firms, especially technology startups, fintech companies, and IT services, with exposure to the EU may feel the impact first, say experts.

"Consumer-driven companies that have exposure to the EU, in areas like IT services and fintech, that support the and other regulated sectors, are likely to be affected first, and have to comply," said Shree Parthasarathy, national leader—cyber risk services,

However, he added that Indian consumers and regulators may not feel the strong impact of the Regulation (GDPR) immediately.

GDPR aims to strengthen and protect the data of individuals within the EU and also deals with export of personal data outside the region.

The laws are relevant due to rising instances of data breaches, with the latest involving Facebook, where the data of around 87 million users globally, including over 5.6 lakh Indians, was accessed by British political research firm through its app, without authorisation.

Parthasarathy said GDPR will impact companies with operations in and those that handle vast amounts of customer or client data, the most.

firms like TCS, Infosys, and reportedly are already rushing to tweak their vendor and customer contracts.

Parthasarathy pointed out that areas like life sciences, manufacturing sector and the government entities will find it much harder to comply to the GDPR in time, that comes into effect from May 25.

Kroll, a New York-based corporate investigations and risk consulting firm also corroborated that the IT companies, which have exposure in will be impacted the most.

Further, it indicated that GDPR regulations stipulate significant fines for companies that do not comply with the law, which will be a concern.

Flouting the GDPR could attract fines of up to 20 million euros or 4 per cent of a firm's global turnover.

Reshmi Khurana, and disputes, South Asia, Kroll, said, it remains to be seen which regulator will oversee the compliance of the law, which companies will be up for scrutiny in the first generation (probably European firms and those handling data from inside or outside Europe), and how the checks will be delivered and fines will be levied.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, May 22 2018. 14:30 IST