At what cost does so much privacy as in Germany come? What else is lost to gain so much privacy?

The stringent data privacy regulations in Germany, particularly those enforced by the General Data Protection Regulation (GDPR) and the German Federal Data Protection Act (BDSG-new), come with significant costs and some trade-offs.

Compliance Costs

• For small and medium-sized enterprises (SMEs) in the European Union, including those in Germany, GDPR compliance costs can range from €1,000 to €50,000 annually, depending on the organization's size and complexity1.
• Larger organizations and multinational corporations can face compliance costs in the millions of euros. For example, the global compliance costs for the GDPR were estimated to be around $7.8 billion for the Global Fortune 500 alone in 20174.
• Specific costs include legal fees for interpreting regulations, drafting privacy policies, managing contracts, and handling breaches. GDPR certification costs can also range from €5,000 to €100,0001.

Operational and Resource Impacts

• Compliance requires significant resources, including the appointment of data protection officers, which is mandatory under the BDSG-new if an organization processes personal data with the involvement of at least twenty individuals2.
• Companies must also invest in personnel, capital, and administrative services to handle data subject requests such as access, portability, deletion, and correction of data. These requirements can divert resources away from product development and innovation4.

Economic and Market Impacts

• The overall economic impact of stringent data privacy laws can be substantial. For instance, if the U.S. were to adopt similar federal data privacy legislation, the estimated annual compliance costs could be up to $122 billion4.
• These costs can lead to reduced investment in other areas of the business or be passed on to consumers, affecting market dynamics and consumer prices.

Fines and Legal Consequences

• Non-compliance with GDPR and BDSG-new can result in hefty fines, up to €20 million or 4% of the organization's global annual turnover, along with additional costs related to legal actions, reputational damage, and customer compensation12.

Consumer and Productivity Impacts

• Consumers may experience increased inconvenience due to more frequent privacy notices and consent requests, which can affect their productivity and user experience4.

In summary, while the robust privacy protections in Germany offer significant benefits in terms of data security and user trust, they come at a considerable financial cost, require substantial resource allocation, and can have broader economic and operational impacts.