Data processor under GDPR: Understanding third-party data processing responsibilities
A data processor is an entity that processes personal data on behalf of a data controller under the General Data Protection Regulation (GDPR). Unlike controllers, who determine the purpose and means of processing, processors only act under instructions from the controller and must follow strict contractual and security obligations.
What does a data processor do?
A data processor performs various data-handling tasks for the controller, such as:
- Storing or managing personal data in cloud platforms or databases.
- Processing payroll data for an employer.
- Handling customer data for marketing or CRM services.
- Analyzing personal data for reporting or AI models.
Key GDPR responsibilities of a data processor
- Only process data based on documented controller instructions.
- Implement appropriate security measures to protect data.
- Assist the controller in fulfilling data subject rights requests.
- Notify the controller of data breaches without undue delay.
- Maintain records of processing activities (ROPA) if required.
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How data processors comply with GDPR requirements
To meet GDPR compliance, data processors must follow specific security, contractual, and reporting obligations.
1. Sign a Data Processing Agreement (DPA)
The processor and controller must enter into a DPA that outlines:
- The scope and purpose of processing.
- Security and confidentiality requirements.
- Obligations regarding data breaches and audits.
2. Implement strong security measures
- Use encryption and pseudonymization to protect data.
- Apply access control policies to limit data exposure.
- Conduct regular security audits to ensure compliance.
3. Assist the controller in GDPR obligations
- Support with Data Subject Access Requests (DSARs).
- Provide audit logs and compliance reports when required.
- Report data breaches to the controller promptly.
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Why GDPR compliance is crucial for data processors
Ensuring GDPR-compliant data processing helps processors:
- Avoid legal penalties for non-compliance.
- Build trust with controllers by demonstrating security measures.
- Improve transparency in data processing activities.
- Strengthen cybersecurity through structured privacy policies.
By following GDPR requirements, data processors can safeguard personal data, support controllers, and maintain strong compliance standards.
