Version 2.1 dated 24 May 2023 – Go to the official PDF version.

Executive Summary

The European Data Protection Board (EDPB) has adopted these guidelines to harmonise the methodology supervisory authorities use when calculating of the amount of the fine. These Guidelines complement the previously adopted Guidelines on the application and setting of administrative fines for the purpose of the Regulation 2016/679 (WP253), which focus on the circumstances in which to impose a fine.

The calculation of the amount of the fine is at the discretion of the supervisory authority, subject to the rules provided for in the GDPR. In that context, the GDPR requires that the amount of the fine shall in each individual case be effective, proportionate and dissuasive (Article 83(1) GDPR). Moreover, when setting the amount of the fine, supervisory authorities shall give due regard to a list of circumstances that refer to features of the infringement (its seriousness) or of the character of the perpetrator (Article 83(2) GDPR). Lastly, the amount of the fine shall not exceed the maximum amounts provided for in Articles 83(4) (5) and (6) GDPR. The quantification of the amount of the fine is therefore based on a specific evaluation carried out in each case, within the parameters provided for by the GDPR.

Taking the abovementioned into account, the EDPB has devised the following methodology, consisting of five steps, for calculating administrative fines for infringements of the GDPR.

Firstly, the processing operations in the case must be identified and the application of Article 83(3) GDPR needs to be evaluated (Chapter 3). Second, the starting point for further calculation of the amount  of  the fine needs to be identified (Chapter 4). This is done by evaluating the classification of the infringement in the GDPR, evaluating the seriousness of the infringement in light of the circumstances of the case, and evaluating the turnover of the undertaking. The third step is the evaluation of aggravating and mitigating circumstances related to past or present behaviour of the controller/processor and increasing or decreasing the fine accordingly (Chapter 5). The fourth step is identifying the relevant legal maximums for the different infringements. Increases applied in previous or next steps cannot exceed this maximum amount (Chapter 6). Lastly, it needs to be analysed whether the calculated final amount meets the requirements of effectiveness, dissuasiveness and proportionality. The fine can still be adjusted accordingly (Chapter 7), however without exceeding the relevant legal maximum.

Throughout all abovementioned steps, it must be borne in mind that the calculation of a fine is no mere mathematical exercise. Rather, the circumstances of the specific case are the determining factors leading to the final amount, which can – in all cases – be any amount up to and including the legal maximum.

These Guidelines and its methodology will remain under constant review of the EDPB.

Version 2.0 – Adopted 28 March 2023

Version history

INTRODUCTION

1. The GDPR introduced the requirement for a personal data breach (henceforth “breach”) to be notified to the competent national supervisory authority (or in the case of a cross-border breach, to the lead authority) and, in certain cases, to communicate the breach to the individuals whose personal data have been affected by the breach.
2. Obligations to notify in cases of breaches existed for certain organisations, such as providers of publicly-available electronic communications services (as specified in Directive 2009/136/EC and Regulation (EU) No 611/2013). There were also some Member States that already had their own national breach notification obligation. This might included the obligation to notify breaches involving categories of controllers in addition to providers of publicly available electronic communication services (for example in Germany and Italy), or an obligation to report all breaches involving personal data (such as in the Netherlands). Other Member States might had relevant Codes of Practice (for example, in Ireland). Whilst a number of EU data protection authorities encouraged controllers to report breaches, the Data Protection Directive 95/46/EC, which the GDPR replaced, did not contain a specific breach notification obligation and therefore such a requirement was new for many organisations. The GDPR makes notification mandatory for all controllers unless a breach is unlikely to result in a risk to the rights and freedoms of individuals. Processors also have an important role toplay and they must notify any breach to their controller.
3. The EDPB considers that the notification requirement has a number of benefits. When notifying the supervisory authority, controllers can obtain advice on whether the affected individuals need to be informed. Indeed, the supervisory authority may order the controller to inform those individuals about the breach. Communicating a breach to individuals allows the controller to provide information on the risks presented as a result of the breach and the steps those individuals can take to protect themselves from its potential consequences. The focus of any breach response plan should be on protecting individuals and their personal data. Consequently, breach notification should be seen as a tool enhancing compliance in relation to the protection of personal data. At the same time, it should be noted that failure to report a breach to either an individual or a supervisory authority may mean that under Article 83 GDPR a possible sanction is applicable to the controller.
4. Controllers and processors are therefore encouraged to plan in advance and put in place processes to be able to detect and promptly contain a breach, to assess the risk to individuals, and then to determine whether it is necessary to notify the competent supervisory authority, and to communicate the breach to the individuals concerned when necessary. Notification to the supervisory authority should form a part of that incident response plan.
5. The GDPR contains provisions on when a breach needs to be notified, and to whom, as well as what information should be provided as part of the notification. Information required for the notification can be provided in phases, but in any event controllers should act on any breach in a timely manner.
6. In its Opinion 03/2014 on personal data breach notification12, WP29 provided guidance to controllers in order to help them to decide whether to notify data subjects in case of a breach. The opinion considered the obligation of providers of electronic communications regarding Directive 2002/58/EC and provided examples from multiple sectors, in the context of the then draft GDPR, and presented good practices for all controllers.
7. The current Guidelines explain the mandatory breach notification and communication requirements of the GDPR and some of the steps controllers and processors can take to meet these obligations. They also give examples of various types of breaches and who would need to be notified in different scenarios

Go to the full Guidelines.