SOC 2 framework alignment with EU privacy regulations

Companies operating in international markets face the challenge of reconciling different data protection standards. Understanding the relationship between the American SOC 2 standard and European data protection regulations is particularly important. How do these two frameworks interact and what benefits does their combined implementation bring? Let's take a closer look at this issue.

What are SOC 2 and GDPR?

SOC 2 is a framework created by the American Institute of Certified Public Accountants (AICPA). It focuses on five key criteria: security, availability, processing integrity, confidentiality, and privacy of customer data .

GDPR (General Data Protection Regulation) has been functioning as a European Union regulation since 2018. Its main goal is to protect the personal data of EU residents, regardless of the location of the entity processing this information .

Where SOC 2 and GDPR overlap

Despite different geographical origins and legal contexts, SOC 2 and GDPR share many common goals and mechanisms:

Data protection forms the foundation of both standards. Both SOC 2 and GDPR require the implementation of advanced security measures, such as encryption, strict access control, and periodic penetration tests . It's worth noting an important difference in approach - GDPR focuses risk analysis around the rights of data subjects, while SOC 2 emphasizes technical safeguards.

The principle of data minimization appears in both standards. SOC 2 recommends collecting only necessary information, while GDPR transforms this recommendation into a binding legal requirement.

Both standards also emphasize the importance of transparency in data processing and impose a breach reporting obligation. GDPR is more rigorous in this regard, imposing a 72-hour deadline for reporting breaches to the appropriate authorities.

Key differences between the two standards

Despite their similarities, there are significant differences between SOC 2 and GDPR that companies must account for in their compliance strategies:

Legal status and consequences

GDPR functions as a mandatory legal act with severe financial sanctions - up to 4% of an organization's global annual turnover . Statistics demonstrate the enforcement scale of these regulations - in 2021, supervisory authorities imposed fines exceeding $1.3 billion total, affecting giants such as Amazon and WhatsApp . The average fine for a violation in 2022 was €22 million .

SOC 2, in contrast, is a voluntary standard primarily aimed at building trust among customers and business partners . While lack of certification doesn't result in direct financial penalties, it can lead to lost contracts and reputational damage.

How compliance is verified?

SOC 2 requires external audits conducted by independent, accredited entities . GDPR, however, relies on internal documentation and systematic risk assessment, though supervisory authorities may conduct inspections.

Unique GDPR features

GDPR introduces several innovative concepts not present in SOC 2:

The right to be forgotten allows individuals to request complete removal of their personal data from an organization's systems.

The requirement to appoint a Data Protection Officer (DPO) in specific cases provides additional oversight of data processing.

The privacy by design principle requires organizations to consider data protection at the design stage of systems and business processes.

Why SOC 2 is gaining popularity in Europe?

An interesting trend in recent years is the growing interest of European companies in SOC 2 certification . More and more EU organizations are implementing this American standard to complement their mandatory GDPR compliance . This interest stems from several important factors:

The ongoing globalization of digital services means European companies regularly collaborate with American partners requiring SOC 2 compliance. Such certification becomes essential for maintaining competitiveness in the international market.

SOC 2 offers a more comprehensive approach to certain security aspects, complementing areas that GDPR regulates less specifically. Combining both standards provides organizations with more complete protection.

A SOC 2 certificate provides a valuable competitive advantage in the European market, signaling to potential customers and business partners a high level of organizational maturity in information security.

Alongside this trend, we observe a global expansion of regulations modeled on GDPR, exemplified by the California Consumer Privacy Act (CCPA) . This demonstrates the universality of the values underpinning the European approach to data protection.

How to integrate SOC 2 and GDPR effectively?

For businesses operating in the European market, the most effective approach involves integrated implementation of both standards:

Taking advantage of synergies

Compliance with one standard significantly facilitates achieving compliance with the other. For example, implementing privacy protection mechanisms required by GDPR naturally helps meet the privacy criteria specified in SOC 2 .

Organizations can use this synergy to optimize compliance costs by planning implementations holistically rather than treating each standard as a separate project. This approach also allows for more efficient use of IT resources and security teams.

Managing third-party responsibilities

In the GDPR model, responsibility for data rests with both controllers (organizations collecting data) and processors (e.g., cloud service providers). SOC 2, however, focuses mainly on auditing service providers.

This difference requires organizations to be particularly careful when formulating contracts with external suppliers and precisely defining scopes of responsibility. Proper management of the supply chain in the context of data processing becomes a key element of a comprehensive compliance strategy.

The cost of non-compliance

The average financial loss resulting from a single data breach incident is estimated at approximately $4 million . This amount includes not only potential administrative penalties but also costs associated with incident response, reputational damage, and customer attrition.

Implementing both SOC 2 and GDPR as complementary elements of a comprehensive information protection strategy significantly reduces this risk. Investment in robust security systems thus brings measurable economic benefits over the longer term.

Conclusion

SOC 2 and GDPR, despite originating from different regulatory environments, show significant convergence in their goals and mechanisms. An increasing number of European companies are implementing both standards to benefit from their complementary nature.

For organizations operating at the intersection of American and European markets, compliance with both SOC 2 and GDPR is no longer optional but has become a strategic business necessity. Ensuring high standards of data protection not only limits the risk of financial penalties but also builds trust among customers and business partners.

In an environment where personal data continues to grow in value and legal regulations become increasingly stringent, a comprehensive approach to information security has become one of the fundamental elements of a business strategy oriented toward long-term success and sustainable development.

Sources:

https://oneclickcomply.com/blog/how-do-soc-2-requirements-align-with-gdpr

https://linfordco.com/blog/gdpr-soc-2/

https://blog.trustero.com/soc-2-compliance-trends-to-watch

https://www.hutsix.io/why-are-soc2-audits-more-popular-in-uk-and-europe/

https://gdprlocal.com/navigating-compliance-gdpr-and-soc-2-compared/

https://www.6clicks.com/resources/comparisons/soc-2-vs-gdpr