When calculating a GDPR fine capped as a percentage of annual turnover, which high-level concept should privacy counsel treat as the relevant turnover base?
Select an answer to reveal the explanation.
Short Explanation
Fine math is not about one tiny subsidiary’s spare change. GDPR percentage caps track the undertaking’s turnover—often the economic group, competition-law style. Counsel should not pretend the fine base is just the desk that made the mistake.
Full Explanation
Articles 83(4)–(5) GDPR set maximum fines by reference to undertakings’ total worldwide annual turnover. EU practice draws on competition-law notions of an undertaking as an economic unit, so group turnover can matter where entities form a single undertaking. Treating only a low-turnover affiliate as the entire base may understate exposure when the group is the relevant economic operator.