Non-compliance with GDPR exposes companies to severe fines, which can reach up to €20 million or 4% of a company’s global annual revenue. These immediate financial penalties are often the most feared aspect by executives, particularly since some regulatory authorities, like France’s CNIL, are notably active in enforcement.

Many other financial risks exist that business leaders should be aware of. Among them are potential litigation and legal fees resulting from a complaint filed by a client, employee, or any authorized administrative or associative entity. A well-known example is the NOYB (“None of Your Business”) association founded by Austrian activist Max Schrems, whose numerous actions have targeted several tech giants, including Google, Apple, and Meta (Facebook’s parent company). In France, the association “La Quadrature du Net” is also very active. In May 2024, for instance, it filed a complaint with CNIL against SNCF regarding its experiments with algorithmic video surveillance in three of its stations. In such contexts, legal costs can quickly become substantial.

The Hidden Costs of Non-Compliance: A Matter of Reputation

Beyond financial penalties and legal expenses, several less visible costs can affect a company’s stability. GDPR non-compliance can severely damage the image and reputation of an organization, whether public or private, when a fine is made public. Companies like Carrefour (Carrefour France and Carrefour Bank), AG2R La Mondiale, Cegedim Santé, Cityscoot, and Doctissimo have faced this in recent years.

Similarly, data breaches involving companies like Boulanger, Bayard, Cultura, Sofinco, Meilleurtaux, and Avis since summer 2024 are certainly not good publicity. This is especially concerning when customers’ banking data (IBAN) are exfiltrated, as happened with telecom operators SFR and Free in October 2024. Stolen files quickly found their way for sale on the dark web. In a context where consumers are increasingly concerned about data protection, breaches of confidentiality can lead to a loss of trust, potentially irreversible. Rebuilding a tarnished reputation is challenging and may reduce the company’s appeal to new clients.

Investors, too, are increasingly mindful of companies’ ethical practices, including compliance with personal data protection regulations. A non-compliant company may appear risky in their eyes, potentially limiting available funding opportunities. This applies to employer branding as well. In a job market where transparency and exemplary practices are highly valued, talented individuals tend to prefer companies that care about their reputation and comply with laws. Those that do not prioritize compliance may struggle to attract skilled and motivated candidates.

Non-compliance can also lead to market share loss. More and more clients, partners, and government entities are seeking to collaborate solely with reputable companies that adhere to current regulations, including GDPR. In an increasingly data-sensitive digital world, non-compliant companies risk being entirely shut out.

Investing in Specialized Software Solutions: A Profitable Investment

To avoid the risks and hidden costs of GDPR non-compliance, many companies are opting for specialized software solutions aimed at simplifying their compliance processes. Among these is Infotel’s Deepeo solution, which proves to be strategic in many respects. Specialized software solutions automate repetitive tasks, such as consent management and right-to-forget requests. Automation significantly reduces the risk of errors and ensures continuous compliance without the need for regular manual checks.

These specialized solutions also enable constant tracking of internal and external audits, keeping a record of all data protection-related documents. They provide invaluable traceability, ensuring end-to-end transparency if regulatory authorities need to review compliance. Additionally, these solutions offer access to built-in GDPR expertise. Specialized software is often designed by data protection experts, with specific features to meet regulatory requirements. This enables companies to adopt best practices without needing extensive in-house training.

Internal teams immediately benefit from this increased efficiency and time savings. Legal services, the IT department, as well as marketing and sales teams, can focus on their core tasks without getting bogged down by highly time-consuming compliance efforts. This increased efficiency directly enhances the company’s productivity.

The costs of GDPR non-compliance extend far beyond fines and penalties. They can impact reputation, client relationships, investments, and even recruitment. Investing in specialized software is therefore a sustainable strategy to reduce long-term costs. Compliance should be seen as a lasting investment, not merely as an obligatory expense.