GDPR Practices and Emerging Trends in Germany: Compliance Strategies from SMEs to AI Applications
Legal Advisor, Düsseldorf Consulting GmbH
Overview of the GDPR Compensation and Sanction System
The General Data Protection Regulation (GDPR) aims not only to ensure data security but also to safeguard individuals’ control over their personal data. Its enforcement system operates on two main axes:
- - Administrative fines (Article 83): These can be calculated based on the company’s turnover, with a maximum of up to 4%.
- - Material and non-material compensation (Article 82): Data subjects may claim damages in national courts, even in cases of mere “loss of control” without actual harm.
As of 2025, several high court decisions in Germany (e.g., BAG, BGH) have expanded the interpretation of these provisions, opening a significant risk window for companies. Even minor violations concerning employee data, customer records, or marketing databases can result in high financial consequences.
Simplifying Transparency Obligations for SMEs: Emerging Policy Discussions
As of June 2025, the German Federal Government is taking major steps toward centralizing data protection supervisory authorities. In this context:
- - Simplification of transparency obligations for SMEs particularly regarding “Information on Data Processing” and the “Duty to Inform” is on the agenda.
- - To eliminate complexity in state-based audits, plans are underway to establish a centralized supervisory system under the Federal Commissioner for Data Protection and Freedom of Information (BfDI).
In our opinion, SMEs would benefit greatly from documenting their data processing activities using simplified templates and providing basic data protection training to their employees. These steps can provide greater administrative flexibility during future audits.
Compliance Recommendations at the Intersection of GDPR and Competition Law
In March 2025, the German Federal Court of Justice (BGH) issued a landmark ruling stating that GDPR violations may also constitute breaches of competition law. The court particularly emphasized:
- - Non-compliance with information obligations,
- - Inadequate privacy notices,
- - Misleading privacy policies.
Such practices may be considered anti-competitive and subject to litigation by competitors or consumer associations.
Compliance Strategies:
- - Review corporate privacy policies not only for data protection compliance but also for compatibility with competition law.
- - Increase transparency on websites and mobile applications (e.g., through clear and understandable cookie policies).
- - Provide specialized compliance training for marketing and CRM departments.
The DeepSeek Case: AI Applications and Third-Country Data Transfers
One of the most significant developments in June was an accusation by Meike Kamp, Berlin’s State Data Protection Commissioner, against the China-based AI platform DeepSeek for serious GDPR violations.
- - It was found that DeepSeek transferred user data to servers in China without a sufficient legal basis.
- - Consequently, the removal of the app from both the Apple App Store and Google Play Store was requested.
Our Perspective:
- - Companies using AI or SaaS-based tools must now critically assess the data flows within such applications.
- - Tools like Standard Contractual Clauses (SCCs) and Transfer Impact Assessments (TIAs) must be employed to ensure lawful data transfers to third countries.
- - Contracts with non EU software providers must be reviewed, and data flow diagrams should be documented.
From Reactive to Proactive GDPR Compliance
In Germany, GDPR enforcement is evolving from being solely punitive to becoming a strategic and competitive advantage.
At Düsseldorf Consulting, we recommend that SMEs ;
- - Simplify and document all data processing activities,
- - Pay close attention to third-country risks when using AI and digital tools,
- - Analyze GDPR related risks that may lead to competition law violations.
This proactive approach not only ensures compliance but also strengthens customer trust and enhances corporate reputation.
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