Data privacy and regulatory compliance: business realities 2024–2025

Data privacy is the protection of information that is not intended for public access and compliance with regulatory requirements regarding its processing. In an environment where personal data is becoming one of the most valuable categories of digital assets, ensuring privacy takes center stage. In 2023, fines for violating GDPR exceeded €1 billion – an unprecedented signal for businesses worldwide.

Why privacy has become a priority

The growth of digitalization, the volume of collected data, and the number of processors increase the risks of sensitive data leaks.

Tightening legislation: GDPR (EU), CCPA (California), LGPD (Brazil), PDPA (Singapore), APPs (Australia), HIPAA, PCI-DSS, and other new initiatives require investment in comprehensive data protection to avoid costly fines and legal consequences.

Reputational losses and profit losses due to data breaches. And even just because consumers do not trust the service. For example, in the USA, 79% of consumers abandon a service if they do not trust its privacy policy (Pew Research, 2023).

The growing demand for transparency in data processing by the service, ensuring the right to data deletion and transfer.

Privacy by Design in Software Development

"Privacy is not a feature that can be added later. This is a fundamental design requirement."
– Ann Cavoukian, author of the Privacy by Design concept

B2B companies are increasingly investing in building data protection processes and implementing the principles of Privacy by Design.

One of the fundamental principles of Privacy by Design states that data protection should be more proactive than reactive. Built into the product from the very beginning and activated by default without any additional actions from the user. Built-in privacy, by design, is the obligation to proactively ensure the protection of personal data in all actions, initiatives, and decisions of the company. For example, when creating a mobile application, it is necessary to analyze and mitigate potential privacy-related risks and establish risk management mechanisms before writing the code.

Some key aspects in implementing Privacy by Design:

Data minimization – always collect only the most necessary data.
Anonymization and pseudonymization. Anonymization involves the irreversible deletion or distortion of personal data, while pseudonymization allows for the preservation of data in its original form but makes direct identification impossible without the use of additional information (hashing and encryption).
Role-based access control (RBAC). Each user has their own set of permissions corresponding to their role and tasks, which simplifies access management and enhances security.
Data encryption at rest and in transit. In other words, encryption of data on devices (data-at-rest encryption) and encryption during transmission between devices (data-in-transit encryption).
Transparency of algorithms, especially in AI solutions – helps increase trust in systems and allows regulators to more effectively monitor their functioning.
Risk management in DevSecOps – integrating security and privacy into development pipelines.

Real examples of privacy compliance in industries:

Financial sector: Banks implement systems where all transactions go through anonymization mechanisms, ensuring client confidentiality.
Healthcare: Medical institutions use patient data encryption and restrict access to patient records only for medical personnel.
E-commerce: Online stores enable users to manage their data and privacy preferences independently.

Best Practices for Compliance and Proactive Data Protection

Creating a data inventory. Considered and organized data maximize the level of control.

Regular DPIAs (Data Protection Impact Assessments). Regular data protection assessments help identify and mitigate privacy risks.

Appointment of a DPO (Data Protection Officer). The auditor, consultant, and data protection officer at the data processing enterprise acts as a privacy lead and liaison with regulators.

Employee training and an internal privacy policy. Employees can work more efficiently and avoid mistakes related to confidential data when they have knowledge of privacy rules. This boosts awareness and reduces human error.

Logging and access auditing. The security system integrates logs and auditing tools to automatically detect and prevent unauthorized access to data.

Integration with IAM and RBAC systems enables centralized management of access control for various systems and services.

B2B context: why this is important for customers

Corporate clients require compliance by default – especially in fintech, healthcare, and HR services.
Software vendors often undergo security audits and complete compliance questionnaires to participate in tenders.
Support for GDPR, CCPA, and others is a competitive advantage in international markets.

Compliance is not just about laws. It's about user trust, risk reduction, reputation, and business resilience. Companies that implement privacy at the architectural level win in the long run.

At We Can Develop IT, we help companies integrate GDPR/CCPA compliance and Privacy by Design principles into software development. From architecture to interface – we embed data security into the foundation of the product. Contact us – together we will make your business reliable and compliant with the strictest standards!

Summary:

Data privacy has emerged as a critical concern for businesses as personal data becomes a highly valued digital asset. Companies are facing increasing risks of data breaches due to the growing volume of collected data and the number of data processors involved. Regulatory frameworks such as GDPR, CCPA, and others necessitate significant investments in data protection to avoid substantial fines and legal issues. Consumers are showing a preference for businesses that prioritize transparency in data processing, with a significant portion abandoning services they do not trust. The concept of "Privacy by Design" is gaining traction, emphasizing the need for data protection to be integrated into products from the outset rather than being added later. Key principles include data minimization, anonymization, and role-based access control to enhance security. Industries such as finance and healthcare are adopting specific measures to ensure client confidentiality and restrict access to sensitive information. Best practices for compliance involve creating a data inventory, conducting regular privacy assessments, and appointing a Data Protection Officer to oversee privacy initiatives. Additionally, employee training and effective logging systems contribute to reducing human error and unauthorized access. Ultimately, businesses that embed privacy into their operations not only comply with regulations but also build trust and resilience in the market.