Compliance Insight
Understanding GDPR in B2B Contracts
Navigating data protection obligations in professional service agreements and commercial partnerships.
A common misconception in the corporate world is that the General Data Protection Regulation (GDPR) only applies to consumer-facing businesses. However, in the B2B sector, data protection is equally critical. Whether you are providing cloud software, professional consulting, or logistics services, the exchange of personal data—even professional contact details—triggers significant legal obligations.
Data Controller vs Data Processor
Determining your role is the first step in compliance. A Data Controller determines the 'why' and 'how' of data processing, while a Data Processor acts on the instructions of the controller. In many B2B relationships, the client is the controller and the service provider is the processor. At Gloaming Legal, we ensure your contracts clearly define these roles to prevent liability overlaps.
Essential Data Processing Agreements (DPA)
Article 28 of the GDPR mandates that a contract must be in place between a controller and a processor. We ensure your DPAs include:
- Defined scope, nature, and purpose of processing.
- Stipulated duration of the processing activity.
- Strict confidentiality commitments from all personnel.
Cross-Border Transfers Post-Brexit
For UK-based businesses like Gloaming Legal clients, the landscape shifted following Brexit. Transferring data from the UK to the EU (and vice versa) now requires adherence to the UK Extension to the EU's Standard Contractual Clauses (SCCs) or the International Data Transfer Agreement (IDTA). Ignoring these mechanisms can lead to significant regulatory friction.
The Cost of Non-Compliance
Penalties reach up to £17.5 million or 4% of annual global turnover, whichever is higher. Beyond fines, the reputational damage and loss of trust from B2B partners can be fatal to growth. Expert contract review is your first line of defense.