Which statement about GDPR's reach is true?

Which statement about GDPR's reach is true?

• A. It affects only companies physically located in the EU
• B. It affects how personal data of EU residents can be collected, stored, and processed, affecting many global companies
• C. It restricts only email communications
• D. It applies only to governments

Answer: (B)

GDPR extends beyond borders and is applied based on the data and the people involved, not the company’s location. It governs how personal data of individuals in the EU can be collected, stored, and processed, and that impact reaches many global companies that handle EU residents’ data even if they’re outside the EU. That extraterritorial reach is why the correct statement describes GDPR’s broad effect on how personal data is processed for EU residents, affecting organizations worldwide. The other options are narrower than reality: GDPR isn’t limited to EU-based companies only; it also applies to non-EU entities that process EU residents’ data. It doesn’t restrict only email communications but all processing of personal data. And it isn’t limited to governments; it applies to both public and private sector handling of personal data.

GDPR extends beyond borders and is applied based on the data and the people involved, not the company’s location. It governs how personal data of individuals in the EU can be collected, stored, and processed, and that impact reaches many global companies that handle EU residents’ data even if they’re outside the EU. That extraterritorial reach is why the correct statement describes GDPR’s broad effect on how personal data is processed for EU residents, affecting organizations worldwide.

The other options are narrower than reality: GDPR isn’t limited to EU-based companies only; it also applies to non-EU entities that process EU residents’ data. It doesn’t restrict only email communications but all processing of personal data. And it isn’t limited to governments; it applies to both public and private sector handling of personal data.