Cross-Border Data Transfers – Privacy Enforcement Surge

How Secure Are Your Data Flows?

How secure are your international data flows? Is your company prepared for the next wave of privacy enforcement? Customer data, HR information, or supplier details cross borders every day, forming the backbone of the digital economy. In 2025, cross-border data transfers have become one of the most complex challenges for legal and IT departments, especially since the European Data Protection Board (EDPB) has identified “AI & personal data” as a focus of its coordinated enforcement efforts. Data protection regulations are drifting apart worldwide, and AI-driven data processing is increasing rapidly. European regulators-imposed fines amounting to billions of euros in 2023 and 2024 alone – a clear signal of massive enforcement pressure and rising risks. Companies are thus facing a Privacy Enforcement Surge – a wave of intensified data protection enforcement for international data flows.

What Exactly Is the Issue?

Does your organization meet the strict requirements of the GDPR? The regulation permits transfers to third countries only if an adequate level of protection is ensured. Since the Court of Justice of the EU’s Schrems II ruling (2020), using Standard Contractual Clauses (SCCs) alone is no longer sufficient. Companies must assess whether authorities in the recipient country could gain access to the data, and document this in Transfer Impact Assessments.

The EU–U.S. Data Privacy Framework established in 2023 provides a new basis for transatlantic data transfers, but it is legally vulnerable and could be invalidated at any time. Therefore, every company needs a clear understanding of where its data flows, on what legal basis, and with which protective measures — from encryption to pseudonymization. Especially for AI, strict GDPR AI compliance is essential: training data, models, and systems must remain GDPR-compliant at all times.

Current GDPR Cases

• Meta (Facebook): In 2023, Meta received a record fine of €1.2 billion from the Irish Data Protection Commission. The reason was the years-long transfer of European Facebook users’ data to the U.S. on the basis of SCCs without sufficient safeguards. Meta was required to halt these data exports.
• Google Analytics: Several EU supervisory authorities ruled that Google Analytics was not GDPR-compliant because the service transmitted data to the U.S., where no equivalent level of protection exists. In the wake of Schrems II, such transfers are considered unlawful without additional safeguards, forcing companies to disable or modify their use of Google Analytics.
• ChatGPT/OpenAI (2023): After a data protection incident revealing deficiencies in transparency, legal basis, and protection of minors, the service had to go offline in Italy until improvements were made. In late 2024, the Italian authority followed up with a €15 million fine for processing personal data without a transparent legal basis.

What Does This Mean for Supply Chains and Contracts?

For companies, this means it’s time to put supply chains and service providers under the microscope. Hardly any business operates without external partners. Cloud services, outsourcing providers, and software vendors are part of almost every supply chain and are often based abroad. The risk: if a service provider violates data protection rules, you are liable alongside them. That’s why clear contractual clauses with these partners are critical. Now is the time to act:

• Update contracts: Use the latest EU SCCs and add explicit obligations regarding security measures.
• Control subcontractors: Ensure that any onward transfers to third parties occur only with your consent and include clear data protection clauses throughout the entire chain.
• Build documentation: Keep verifiable records of where data flows and what safeguards are in place, so you have evidence ready for supervisory authorities.

By taking these steps, you maintain control over your data and demonstrate to regulators that you have exercised due diligence.

How Can Technology Help?

Manual compliance management is no longer enough. Modern tools automate data protection compliance and provide transparency and security by reducing risks:

• Compliance maps: Visualize data flows from the EU to sub-processors abroad by scanning all systems and applications to show where personal data travels (highlighting possible third-country transfers).
• Real-time monitoring: Continuously check whether transfers are permissible and send alerts when risks arise.
• Audit trails: Document every data transfer and provide evidence for authorities (complete logs of all data access and movements).
• Early risk detection: AI-driven analyses identify problematic transfers at an early stage, before they become critical.

With such tools, organizations can turn privacy from a risk into an opportunity. Companies that leverage technology secure their AI data privacy and strengthen the trust of customers and partners.

Conclusion

International data flows are indispensable for businesses. Yet in 2025, the risks associated with them are growing. Violations in cross-border data transfers can lead to multi-billion-euro fines, operational disruptions, and a severe loss of trust. With proactive measures, however, these risks can be averted. Establish full transparency over all data movements, update your contracts and processes in a timely manner, and implement technical protections against unauthorized access. In doing so, you transform data protection compliance from a burdensome duty into a competitive advantage that reinforces the trust of your customers and partners.

Are you prepared for the increasing pressure from data protection and compliance requirements? With STP.one, you can transform complex requirements into efficient workflows. With Knowliah, you can keep track of contracts, guidelines, and data flows. Contract Insights and Legal Twin automatically check your data protection clauses and highlight risks, while the Documents module ensures audit-proof storage and complete traceability. Schedule a demo today and discover how to stay one step ahead of the Privacy Enforcement Surge.