Doing Business in Europe Involving Personal Data? Comply with the GDPR

Does Your U.S. Startup Need to Comply with GDPR? For many U.S. startups, international growth is part of the business plan from day one. But expanding your reach—especially into Europe—comes with legal obligations, including compliance with the General Data Protection Regulation (GDPR).

Understanding your obligations now can help avoid costly penalties and build customer trust later.

What Is the GDPR?

The General Data Protection Regulation (GDPR) is the European Union’s comprehensive privacy law that governs how companies collect, use, and protect the personal data of individuals in the EU.

While it's a European law, its reach is global. If your startup interacts with EU residents in certain ways, GDPR likely applies—even if you have no physical presence in Europe.

Does GDPR Apply to Your U.S. Startup?

You must comply with GDPR if you:

• Offer goods or services to individuals in the EU, whether paid or free

• Monitor the behavior of individuals located in the EU (such as through website cookies, tracking, or analytics)

Examples of startups that may fall under GDPR:

• An e-commerce site that ships to EU countries

• A mobile app available to EU users

• A SaaS platform that accepts EU customer sign-ups

• A website using analytics that tracks visitors from the EU

If your startup doesn’t target EU residents in any way, GDPR likely doesn’t apply. But if you have even a small customer base or website traffic from the EU, you should be prepared.

Key GDPR Compliance Steps for U.S. Startups

Understand What Personal Data You Collect. GDPR defines "personal data" broadly. It includes:

• Names, email addresses, phone numbers

• IP addresses, location data, device IDs

• Payment information

• Any other information that can directly or indirectly identify a person

Map out what personal data you collect, how you collect it, and where it is stored.

Have a Clear, Accessible Privacy Policy. Your privacy policy must explain:

• What data you collect

• Why you collect it

• How you use it

• Who you share it with (including third-party vendors)

• How individuals can exercise their rights under GDPR

Make this policy easy to find on your website or app.

Obtain Valid Consent Where Required. For certain types of data processing (especially for marketing or website tracking), GDPR requires:

• Freely given, specific, informed, and unambiguous consent

• A clear, affirmative action (pre-ticked boxes don’t count)

• The ability to withdraw consent at any time

This often means using cookie banners or opt-in checkboxes.

Respect Individuals’ Data Rights. GDPR grants EU individuals rights over their data, including:

• The right to access their personal data

• The right to correct inaccuracies

• The right to have data deleted

• The right to restrict or object to processing

• The right to data portability

Your startup must have processes to respond to these requests, typically within 30 days.

Secure the Data You Collect. GDPR requires "appropriate technical and organizational measures" to protect personal data. For startups, this usually means:

• Strong password policies and two-factor authentication

• Encryption of sensitive data

• Secure cloud storage

• Limiting data access to only necessary team members

• Regular software updates and security patches

Use GDPR-Compliant Vendors. If you work with third-party providers (payment processors, cloud services, etc.) who process personal data, GDPR requires:

• Written Data Processing Agreements (DPAs)

• Ensuring those providers meet GDPR standards

Popular platforms like Stripe, AWS, and Google typically offer GDPR-compliant services—but you still need to formalize the agreements.

Have a Breach Response Plan. If you experience a personal data breach that could harm individuals, GDPR requires you to:

• Notify EU data protection authorities within 72 hours

• Notify affected individuals if necessary

Summary

GDPR Compliance Is Good for Business. It:

• Builds trust with customers

• Positions your business for international growth

• Reduces the risk of fines and legal challenges

• Aligns your practices with growing global privacy expectations

It also avoids the downsides of non-compliance: fines of up to €20 million or 4% of annual global revenue, whichever is higher.

If your U.S. startup targets or interacts with individuals in the EU, GDPR compliance isn’t optional—it’s a necessity. But compliance doesn’t have to overwhelm you. With proper planning and practical steps, you can integrate GDPR requirements into your business operations from the start.