OneTrust Certified Privacy Professional Practice Exam

What is the maximum administrative fine for non-compliance with the GDPR?

1. 10 million Euros

2. 20 million Euros or 4% of global annual turnover

3. 5 million Euros or 2% of global annual turnover

4. No maximum limit defined

The correct answer is: 20 million Euros or 4% of global annual turnover

The maximum administrative fine for non-compliance with the GDPR is indeed substantial and is set to incentivize compliance among organizations handling personal data. The regulation stipulates that fines can reach up to 20 million Euros or 4% of a company's global annual turnover, whichever is higher. This structure emphasizes the gravity of data protection violations and underscores the potential financial risks organizations face if they fail to adhere to GDPR requirements. This approach serves multiple purposes: it not only acts as a deterrent against potential violations but also allows regulatory authorities to impose penalties that are proportionate to the economic status of the organization involved. Larger entities with higher turnovers may face exceedingly high fines, reflecting their ability to absorb such financial hits while still stressing the importance of protecting individual privacy. This tiered approach to penalties reinforces the GDPR's commitment to safeguarding personal data and ensuring accountability across all organizations.