1. Stricter Consent Requirements

One of the significant changes in the 2025 update to the GDPR is the stricter consent requirements for businesses collecting personal data. The updated regulation mandates that businesses must obtain explicit, informed, and unambiguous consent before processing any personal data.

Businesses will need to update their consent forms, ensuring that they clearly explain the purpose of data collection and provide users with an easy option to withdraw consent. This shift emphasizes transparency and user control over their data, making it crucial for businesses to review and adjust their data collection processes.

2. Enhanced Data Portability Rights

GDPR’s data portability provisions have been strengthened in the 2025 update. Consumers now have a more robust right to request their personal data in a format that can be easily transferred from one service provider to another.

This change impacts businesses that rely on customer data to offer services or products. Companies must ensure they can provide this data in a structured, commonly used, and machine-readable format. Businesses should implement systems that make it easier for customers to export their data and ensure these processes are seamless to maintain compliance.

3. Expanded Definition of Personal Data

In the 2025 update, the definition of personal data has been expanded to include more categories of data, including certain digital identifiers and behavioral data. This change brings new types of data under GDPR's protection, requiring businesses to reassess the data they collect.

Companies will need to review their data inventories and assess whether they collect any new categories of data that now fall under GDPR’s scope. This could include online identifiers like cookies, tracking information, or behavioral data tied to an individual’s actions on a website or app.

4. Increased Penalties for Non-Compliance

The 2025 update introduces stricter penalties for businesses that fail to comply with GDPR. Fines for non-compliance can now reach up to 6% of a company’s global turnover, up from the previous 4% cap. This increase in penalties is designed to encourage businesses to prioritize data protection and privacy.

To mitigate the risk of financial penalties, businesses should implement regular audits of their data protection practices, provide staff training, and establish clear data protection policies. Ensuring compliance will require ongoing attention and an organizational culture that values data privacy.

5. Data Protection Impact Assessments (DPIAs) for High-Risk Processing

Businesses that engage in high-risk data processing activities, such as large-scale data mining or profiling, must now conduct more detailed Data Protection Impact Assessments (DPIAs). The 2025 updates specify that DPIAs must be more thorough and involve an ongoing evaluation of risks, especially when new technologies are used.

Companies involved in high-risk processing will need to develop more comprehensive risk assessment procedures, implement safeguards, and ensure that data subjects’ rights are protected. DPIAs should be a part of any new project or initiative that involves sensitive personal data.

6. Greater Focus on Data Minimization

The principle of data minimization has been reinforced in the 2025 update to GDPR. This principle states that businesses should only collect the minimum amount of personal data necessary for the purpose of processing. The updated regulation mandates that companies routinely assess whether the data they collect is excessive.

Businesses should review their data collection practices and ensure that they are only gathering the data needed to achieve their business goals. Minimizing data collection not only ensures compliance but also reduces the risk of potential data breaches.

7. Strengthened Rights for Children and Vulnerable Groups

The updated GDPR now places more emphasis on protecting the data of children and vulnerable individuals. Businesses targeting these groups must implement additional safeguards to ensure that consent is properly obtained and data is processed responsibly.

If your business interacts with minors or vulnerable individuals, you will need to take extra steps to ensure that their data is handled with care. This may include age verification processes and obtaining consent from a parent or guardian for children under a certain age.

8. International Data Transfers Under Scrutiny

The 2025 GDPR update introduces stricter rules for international data transfers, particularly when data is being sent to countries outside of the EU that do not have an adequacy decision from the European Commission. Businesses must ensure that they have adequate safeguards in place, such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs), to protect the data when it is transferred abroad.

Companies conducting business outside the EU should review their international data transfer practices to ensure they comply with the new requirements and avoid potential legal complications.

The GDPR updates in 2025 introduce several new challenges for businesses, but they also offer an opportunity to enhance data privacy practices and build trust with consumers.

By focusing on stricter consent mechanisms, expanded data portability, increased penalties, and more comprehensive data protection measures, businesses can stay ahead of the curve.

To ensure compliance, businesses must continuously monitor and adapt their data protection practices, integrate data privacy by design, and stay informed about any future regulatory changes. In doing so, they can safeguard both their customers' personal data and their own reputations in an increasingly data-driven world.