What are the penalties for GDPR violations?

GDPR establishes a two-tier penalty structure. Lower-tier violations (inadequate records, failure to notify breaches, insufficient data protection measures) can result in fines up to €10 million or 2% of global annual turnover, whichever is higher. Higher-tier violations (consent violations, ignoring data subject rights, illegal data transfers) can reach €20 million or 4% of global annual turnover.

These penalties are designed to be meaningful even for massive corporations. A 4% turnover fine against a company like Amazon or Google runs into billions of euros-amounts that actually influence corporate behavior. For smaller organizations, €20 million can be existential. The penalties are proportionate to offense severity, company size, and remediation efforts, but the ceilings are intentionally dramatic.

Beyond direct fines, violations trigger reputational damage, legal costs, and operational disruption. Regulatory investigations consume resources; public enforcement actions damage brand trust; affected individuals may pursue private legal action. GDPR penalties make compliance cost-effective compared to violation consequences. The uregulation was designed that way deliberately. Treating compliance as optional is financially irrational.