With over 400 million internet users in Europe and 331 million in the US (11% of which reside in California alone), understanding the nuances of privacy laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) is crucial for compliant and ethical consumer data collection.
Navigating this compliance landscape can be challenging for businesses serving European and Californian markets.
This guide explores the key differences between CCPA and GDPR, their impact on data analytics, and how to ensure your business meets these essential privacy requirements.
What is the California Consumer Privacy Act (CCPA)?
The California Consumer Privacy Act (CCPA) is a data privacy law that gives California consumers control over their personal information. It applies to for-profit businesses operating in California that meet specific criteria related to revenue, data collection and sales.
Origins and purpose
The CCPA addresses growing concerns about data privacy and how businesses use personal information in California. The act passed in 2018 and went into effect on 1 January 2020.
Key features
- Grants consumers the right to know what personal information is collected
- Provides the right to delete personal information
- Allows consumers to opt out of the sale of their personal information
- Prohibits discrimination against consumers who exercise their CCPA rights
Key definitions under the CCPA framework
- Business: A for-profit entity doing business in California and meeting one or more of these conditions:
- Has annual gross revenues over $25 million;
- Buys, receives, sells or shares 50,000 or more consumers’ personal information; or
- Derives 50% or more of its annual revenues from selling consumers’ personal information
- Consumer: A natural person who is a California resident
- Personal Information: Information that could be linked to, related to or used to identify a consumer or household, such as online identifiers, IP addresses, email addresses, social security numbers, cookie identifiers and more
What is the General Data Protection Regulation (GDPR)?
The General Data Protection Regulation (GDPR) is a data privacy and protection law passed by the European Union (EU). It’s one of the strongest and most influential data privacy laws worldwide and applies to all organisations that process the personal data of individuals in the EU.
Origins and purpose
The GDPR was passed in 2016 and went into effect on 25 May 2018. It aims to harmonise data privacy laws in Europe and give people in the European Economic Area (EEA) privacy rights and control over their data.
Key features
- Applies to all organisations that process the personal data of individuals in the EEA
- Grants individuals a wide range of privacy rights over their data
- Requires organisations to obtain explicit and informed consent for most data processing
- Mandates appropriate security measures to protect personal data
- Imposes significant fines and penalties for non-compliance
Key definitions under the GDPR framework
- Data Subject: An identified or identifiable person
- Personal Data: Any information relating to a data subject
- Data Controller: The entity or organisation that determines how personal data is processed and what for
- Data Processor: The entity or organisation that processes the data on behalf of the controller
CCPA vs. GDPR: Key similarities
The CCPA and GDPR enhance consumer privacy rights and give individuals greater control over their data.
| Dimension | CCPA | GDPR |
| Purpose | Protect consumer privacy | Protect individual data rights |
| Key Rights | Right to access, delete and opt out of sale | Right to access, rectify, erase and restrict processing |
| Transparency | Requires transparency around data collection and use | Requires transparency about data collection, processing and use |
CCPA vs. GDPR: Key differences
While they have similar purposes, the CCPA and GDPR differ significantly in their scope, approach and specific requirements.
| Dimension | CCPA | GDPR |
| Scope | For-profit businesses only | All organisations processing EU consumer data |
| Territorial Reach | California-based natural persons | All data subjects within the EEA |
| Consent | Opt-out system | Opt-in system |
| Penalties | Per violation based on its intentional or negligent nature | Case-by-case based on comprehensive assessment |
| Individual Rights | Narrower (relative to GDPR) | Broader (relative to CCPA) |
CCPA vs. GDPR: A multi-dimensional comparison
The previous sections gave a broad overview of the similarities and differences between CCPA and GDPR. Let’s now examine nine key dimensions where these regulations converge or diverge and discuss their impact on data analytics.
#1. Scope and territorial reach
The GDPR has a much broader scope than the CCPA. It applies to all organisations that process the personal data of individuals in the EEA, regardless of their business model, purpose or physical location.
The CCPA applies to medium and large for-profit businesses that derive a substantial portion of their earnings from selling Californian consumers’ personal information. It doesn’t apply to non-profits, government agencies or smaller for-profit companies.
Impact on data analytics
The difference in scope significantly impacts data analytics practices. Smaller businesses may not need to comply with either regulation, some may only need to follow the CCPA, while most global businesses must comply with both. This often requires different methods for collecting and processing data in California, Europe, and elsewhere.
#2. Penalties and fines for non-compliance
Both the CCPA and GDPR impose penalties for non-compliance, but the severity of fines differs significantly:
| CCPA | Maximum penalty |
| $2,500 per unintentional violation $7,500 per intentional violation |
“Per violation” means per violation per impacted consumer. For example, three intentional CCPA violations affecting 1,000 consumers would result in 3,000 total violations and a $22.5 million maximum penalty (3,000 × $7,500).
The largest CCPA fine to date was Zoom’s $85 million settlement in 2021.
In contrast, the GDPR has resulted in 2,248 fines totalling almost €6.6 billion since 2018 — €2.4 billion of which were for non-compliance.
| GDPR | Maximum penalty |
| €20 million or 4% of all revenue earned the previous year |
So far, the biggest fine imposed under the GDPR was Meta’s €1.2 billion fine in May 2023 — 15 times more than Zoom had to pay California.
Impact on data analytics
The significant difference in potential fines demonstrates the importance of regulatory compliance for data analytics professionals. Non-compliance can have severe financial consequences, directly affecting budget allocation and business operations.
Businesses must ensure their data collection, storage and processing practices comply with regulations in both Europe and California.
Choosing privacy-first, compliance-ready analytics platforms like Matomo is instrumental for mitigating non-compliance risks.
#3. Data subject rights and consumer rights
The CCPA and GDPR give people similar rights over their data, but their limitations and details differ.
Rights common to the CCPA and GDPR
- Right to Access/Know: People can access their personal information and learn what data is collected, its source, its purpose and how it’s shared
- Right to Delete/Erasure: People can request the deletion of their personal information, with some exceptions
- Right to Non-Discrimination: Businesses can’t discriminate against people who exercise their privacy rights
Consumer rights unique to the CCPA
- Right to Opt Out of Sale: Consumers can prohibit the sale of their personal information
- Right to Notice: Businesses must inform consumers about data collection practices
- Right to Disclosure: Consumers can request specific information collected about them
Data subject rights unique to the GDPR
- Right to be Informed: Broader transparency requirements encompass data retention, automated decision-making and international transfers
- Right to Rectification: Data subjects may request the correction of inaccurate data
- Right to Restrict Processing: Consumers may limit data use in certain situations
- Right to Data Portability: Businesses must provide individual consumer data in a secure, portable format when requested
- Right to Withdraw Consent: Consumers may withdraw previously granted consent to data processing
| CCPA | GDPR | |
| Right to Access or Know | ✓ | ✓ |
| Right to Delete or Erase | ✓ | ✓ |
| Right to Non-Discrimination | ✓ | ✓ |
| Right to Opt-Out | ✓ | |
| Right to Notice | ✓ | |
| Right to Disclosure | ✓ | |
| Right to be Informed | ✓ | |
| Right to Rectification | ✓ | |
| Right to Restrict Processing | ✓ | |
| Right to Data Portability | ✓ | |
| Right to Withdraw Consent | ✓ |
Impact on data analytics
Data analysts must understand these rights and ensure compliance with both regulations, which could potentially require separate data handling processes for EU and California consumers.
#4. Opt-out vs. opt-in
The CCPA generally follows an opt-out model, while the GDPR requires explicit consent from individuals before processing their data.
Impact on data analytics
For CCPA compliance, businesses can collect data by default if they provide opt-out mechanisms. Failing to process opt-out requests can result in severe penalties, like Sephora’s $1.2 million fine.
Under GDPR, organisations must obtain explicit consent before collecting any data, which can limit the amount of data available for analysis.
#5. Parental consent
The CCPA and GDPR have provisions regarding parental consent for processing children’s data. The CCPA requires parental consent for children under 13, while the GDPR sets the age at 16, though member states can lower it to 13.
Impact on data analytics
This requirement significantly impacts businesses targeting younger audiences. In Europe and the US, companies must implement different methods to verify users’ ages and obtain parental consent when necessary.
The California Attorney General’s Office recently fined Tilting Point Media LLC $500,000 for sharing children’s data without parental consent.
#6. Data security requirements
Both regulations require businesses to implement adequate security measures to protect personal data. However, the GDPR has more prescriptive requirements, outlining specific security measures and emphasising a risk-based approach.
Impact on data analytics
Data analytics professionals must ensure that data is processed and stored securely to avoid breaches and potential fines.
#7. International data transfers
Both the CCPA and GDPR address international data transfers. Under the CCPA, businesses must only inform consumers about international transfers. The GDPR has stricter requirements, including ensuring adequate data protection safeguards for transfers outside the EEA.
Other rules, like the Payment Services Directive 2 (PSD2), also affect international data transfers, especially in the financial industry.
PSD2 requires strong customer authentication and secure communication channels for payment services. This adds complexity to cross-border data flows.
Impact on data analytics
The primary impact is on businesses serving European residents from outside Europe. Processing data within the European Union is typically advisable. Meta’s record-breaking €1.2 billion fine was specifically for transferring data from the EEA to the US without sufficient safeguards.
Choosing the right analytics platform helps avoid these issues.
For example, Matomo offers a free, open-source, self-hosted analytics platform you can deploy anywhere. You can also choose a managed, GDPR-compliant cloud analytics solution with all data storage and processing servers within the EU (in Germany), ensuring your data never leaves the EEA.
#8. Enforcement mechanisms
The California Attorney General is responsible for enforcing CCPA requirements, while in Europe, the Data Protection Authority (DPA) in each EU member state enforces GDPR requirements.
Impact on data analytics
Data analytics professionals should be familiar with their respective enforcement bodies and their powers to support compliance efforts and minimise the risk of fines and penalties.
#9. Legal basis for personal data processing
The GDPR outlines six legal grounds for processing personal data:
- Consent
- Contract
- Legal obligation
- Vital interests
- Public task
- Legitimate interests
The CCPA doesn’t explicitly define lawful bases but focuses on consumer rights and transparency in general.
Impact on data analytics
Businesses subject to the GDPR must identify and document a valid lawful basis for each processing activity.
Compliance rules under CCPA and GDPR
Complying with the CCPA and GDPR requires a comprehensive approach to data privacy. Here’s a summary of the essential compliance rules for each framework:
CCPA compliance rules
- Create clear and concise privacy policies outlining data collection and use practices
- Give consumers the right to opt-out
- Respond to consumer requests to access, delete and correct their personal information
- Implement reasonable security measures for consumers’ personal data protection
- Never discriminate against consumers who exercise their CCPA rights
GDPR compliance rules
- Obtain explicit and informed consent for data processing activities
- Implement technical and organisational controls to safeguard personal data
- Designate a Data Protection Officer (DPO) if necessary
- Perform data protection impact assessments (DPIAs) for high-risk processing activities
- Maintain records of processing activities
- Promptly report data breaches to supervisory authorities
Navigating the CCPA and GDPR with confidence
Understanding the nuances of the CCPA and GDPR is crucial for businesses operating in the US and Europe. These regulations significantly impact data collection and analytics practices.
Implementing robust data security practices and prioritising privacy and compliance are essential to avoid severe penalties and build trust with today’s privacy-conscious consumers.
Privacy-centric analytics platforms like Matomo enable businesses to collect, analyse and use data responsibly and transparently, extracting valuable insights while maintaining compliance with both CCPA and GDPR requirements.
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