Privacy Laws | Data Protection | International Compliance

Data is the currency of cross-border business, this is becoming a evident in a globalized world. Whether it’s the transfer of customer profiles, behavioral analytics, employee records, or cloud-hosted SaaS services, multinational transactions routinely involve the movement of personal data across jurisdictions. However, the patchwork of global data privacy regulations—from the EU’s GDPR to California’s CPRA and beyond—presents both a legal minefield and a strategic compliance challenge.

With penalties in the hundreds of millions and mounting reputational risks, data privacy must now be a front-end consideration in dealmaking, procurement, outsourcing, and M&A. This article explores how organizations can mitigate risk and ensure lawful handling of personal data in cross-border contexts.

The Regulatory Landscape: A Multipolar Compliance Regime

1. GDPR (EU General Data Protection Regulation)

• Scope: Extraterritorial; applies to any organization processing data of EU/EEA residents
• Key Requirements:
  • Lawful basis for processing
  • Data subject rights (access, erasure, portability)
  • Data Protection Impact Assessments (DPIAs)
  • Cross-border transfer mechanisms (Standard Contractual Clauses, Binding Corporate Rules)

2. CPRA (California Privacy Rights Act)

• Scope: Applies to businesses that collect data from California residents
• Key Features:
  • Expanded consumer rights (opt-out of sharing, correction rights)
  • “Sensitive personal information” category
  • Mandatory risk assessments for high-impact processing
  • Creation of the California Privacy Protection Agency (CPPA)

3. Other Notable Regimes

• Brazil’s LGPD: GDPR-like structure; legal basis and data subject rights essential
• China’s PIPL: Requires data localization and government approval for international transfers
• India’s DPDP Act (2023): Consent-based framework with potential data transfer restrictions
• Canada’s CPPA (proposed): Seeks alignment with EU standards, currently under debate

Cross-Border Transactions: Where the Legal Issues Arise

Cross-border transactions—whether through corporate acquisitions, technology procurement, or cloud data hosting—trigger a host of privacy compliance obligations, including:

Transfer Mechanisms & Legal Bases

Organizations must ensure adequate transfer mechanisms are in place when moving personal data out of jurisdictions with restrictive data laws (e.g., EU, China). This includes:

• Standard Contractual Clauses (SCCs) under GDPR
• Contractual guarantees under CPRA
• Government filings or certifications under PIPL and other national laws

Due Diligence in M&A

In cross-border mergers or acquisitions:

• Buyers must conduct privacy due diligence to assess the target’s compliance posture
• Identify hidden liabilities tied to legacy data practices or breach history
• Ensure contractual alignment with applicable privacy regimes post-acquisition

Vendor and Processor Accountability

When engaging foreign vendors (especially cloud, CRM, HR platforms):

• Organizations remain liable for their processors’ non-compliance
• Data Processing Agreements (DPAs) must include:
  • Sub-processor disclosure
  • International transfer clauses
  • Audit rights and breach notification protocols

Enforcement and Liability

Fines for cross-border data mishandling are increasing:

• GDPR: Up to €20 million or 4% of global turnover
• CPRA: $7,500 per intentional violation, per affected individual
• PIPL: Up to 5% of annual revenue, along with operational suspensions

Best Practices for Legal and Compliance Teams

To manage this complexity, in-house counsel and privacy professionals should:

1. Map Data Flows
   Understand where personal data originates, travels, and is stored—especially involving vendors or affiliates across borders.
2. Maintain a Multi-Jurisdictional Compliance Framework
   Align global practices with the highest common denominator (often GDPR), then localize as needed.
3. Review and Update Transfer Contracts
   Ensure all cross-border agreements use updated SCCs or local equivalents, with country-specific addenda where required.
4. Build Global Consent and Rights Management Systems
   Implement tools to track and respond to access, deletion, and correction requests in compliance with each jurisdiction’s timelines and format.
5. Implement Ongoing Monitoring and Training
   Privacy is not a one-time task—create audit trails, document DPIAs, and train employees on handling cross-border data appropriately.

Conclusion: Global Data Privacy Regulations Needed

Data privacy compliance is now inseparable from doing business globally. In a world where data moves faster than legal harmonization, the organizations that succeed will be those that embed legal foresight into every transaction, contract, and data flow.

For legal departments, this means transitioning from reactive compliance to a proactive global data governance strategy, staying ahead of shifting regulations, and ensuring that privacy risk doesn’t become a hidden liability on the balance sheet.