August 9, 2025
2 min read
The analysis of the General Data Protection Regulation (GDPR) territorial scope reveals that its applicability is defined primarily by Article 3 (Regulation (EU) 2016/679). The regulation applies not only to entities established within the European Union (EU) but also to those outside the EU under specific circumstances. The findings can be summarized as follows:
Organizations established in the EU:
Any entity with a physical presence in the EU, regardless of where data processing takes place, falls under GDPR if it processes personal data of individuals residing in the EU. The criterion of "establishment" is interpreted broadly, encompassing subsidiaries, branches, and even representatives, if there is a stable arrangement.
Organizations not established in the EU but targeting the EU market:
GDPR applies when non-EU organizations offer goods or services to individuals in the EU. The intention to target EU residents is key, rather than mere accessibility of a website or online service. Indicators include offering local language/currency options or actively advertising to EU residents.
Monitoring of behavior:
GDPR covers entities outside the EU if they monitor the behavior of individuals within the EU. Examples include tracking cookies, online profiling, geolocation services, and behavioral advertising that specifically targets EU residents.
Extraterritorial reach:
The extraterritoriality of GDPR distinguishes it from previous data protection regimes. Its broad scope seeks to ensure that EU residents’ data is protected regardless of where processing occurs.
Key observations:
In summary, GDPR applies to a wide range of organizations—both within and outside Europe—based on their interaction with the personal data of individuals within the EU. The regulation’s design emphasizes comprehensive coverage to address the complexities of global data flows.
