SaaS platforms manage sensitive data, and under the General Data Protection Regulation (GDPR), such data requires taking legal responsibilities. Whether you operate in the EU or simply serve users there, GDPR compliance is compulsory for everyone. For SaaS companies, compliance is not only about escaping penalties. It is about trust and securing the company’s infrastructure. In this guide, we cover GDPR compliance requirement for SaaS platform.
What is GDPR?
General Data Protection Regulation (GDPR) is a privacy law enforced by the European Union. It lawfully regulates how businesses based in the EU or European Economic Area (EEA) collect, process, and share the personal data of individuals residing in the region.
What’s the main idea of GDPR?
Some of the founding pillars of GDPR include:
- Purpose Limitation
- Data Minimisation
- Lawfulness, Fairness, and Transparency
- Accuracy
- Storage Limitation
- Integrity and Confidentiality
- Accountability
Is GDPR Compliance in SaaS Important?
From account credentials and billing information to behavioural analytics, Saas platforms process vast amounts of user data every day.
Here’s why compliance is business-critical for SaaS platforms:
- Global reach, global responsibility: SaaS platforms often serve customers across borders. If any of your users are based in the EU or EEA, GDPR applies, regardless of where your servers or offices are located.
- Controllers and processors overlap in SaaS: Most SaaS platforms operate in a hybrid role. You could be a processor handling client data for them and also act as a controller for purposes of collecting user behavior metrics, sending onboarding emails, etc. Both roles under GDPR have different commitments.
- Privacy is as important as security: Even a safe platform must uphold data rights. This includes allowing controls for deletion, data portability, consenting, preserving secrecy, and restricting retention.
Source: https://qualysec.com/gdpr-compliance-requirement-for-saas-platform/