government-accountability-and-transparency
How Irish Companies Can Prepare for Data Protection Regulatory Changes
Table of Contents
Data protection regulation in Ireland is entering a period of significant evolution. While the General Data Protection Regulation (GDPR) has been the cornerstone of privacy law since 2018, Irish companies now face a wave of new or updated rules at both EU and national level. The Data Protection Commission (DPC) is stepping up enforcement, and regulatory proposals such as the ePrivacy Regulation, the Data Governance Act, and the EU’s AI Act are reshaping the compliance landscape. For Irish businesses – from small start-ups to multinational headquarters – proactive preparation is no longer optional. This article provides a practical, forward-looking guide to prepare for the regulatory changes coming down the track.
Understanding the Current and Upcoming Regulatory Landscape
Ireland’s data protection framework is rooted in the GDPR, implemented domestically through the Data Protection Act 2018. However, several major updates are either in force or nearing adoption:
- ePrivacy Regulation (proposed) – will replace the current ePrivacy Directive and impose stricter rules on cookies, direct marketing, and electronic communications. It is expected to align closely with the GDPR but add specific requirements for consent mechanisms and data retention.
- Data Governance Act (DGA) – effective from September 2023, it creates new rules for data sharing, reuse of public-sector data, and designation of data intermediaries. Irish companies handling data from public sources or acting as data-sharing platforms will need to comply.
- EU AI Act – approved in March 2024, it introduces risk-based obligations for AI systems, including those that process personal data. High-risk AI systems must meet transparency, human oversight, and data governance requirements.
- UK adequacy decisions – the EU’s data adequacy decisions for the UK are under review. Irish companies transferring data to or from the UK must monitor these decisions closely and have alternative transfer mechanisms ready (e.g., Standard Contractual Clauses).
- DPC enforcement trends – the DPC has been issuing record fines (including the €1.2 billion Meta fine in 2023) and is increasingly focused on data retention, lawful processing bases, and international transfer compliance.
Staying informed about these developments is the first step. The DPC’s official website provides up-to-date guidance, and the European Data Protection Board (EDPB) publishes binding decisions and recommendations that directly affect Irish companies.
Step 1: Conduct a Comprehensive Data Audit
Before you can prepare for regulatory changes, you need full visibility into your data ecosystem. A thorough data audit should go beyond simply listing databases. It should map the entire lifecycle of personal data – collection, processing, storage, sharing, and deletion.
What to include in the audit
- Data inventory – every system and application that processes personal data, including cloud services, HR tools, marketing platforms, and third-party integrations.
- Data flows – diagrams showing how data moves within the organisation and across borders. Pay special attention to transfers to countries outside the EEA, including the UK and US.
- Lawful basis mapping – for each processing activity, document the legal basis (consent, legitimate interest, contract, legal obligation, vital interest, public task). Current trends from the DPC indicate that reliance on “legitimate interest” is being scrutinised more heavily, especially for direct marketing and profiling.
- Retention periods – verify that data is kept only as long as necessary. The DPC has issued guidance on retention policies and expects organisations to have clear, enforceable schedules.
- Third-party risks – identify all data processors and sub-processors. Under the DGA, roles like data intermediaries will introduce new obligations for transparency and accountability.
Use the audit results to identify compliance gaps that need attention before new rules take effect. For example, if your cookie consent mechanism relies on pre-ticked boxes (which the ePrivacy Regulation will outlaw), you need to plan a transition to opt-in consent.
Step 2: Revise Privacy Notices and Consent Mechanisms
Privacy notices must be transparent, concise, and up to date. The upcoming changes demand even greater clarity. The ePrivacy Regulation will require that consent for cookies and tracking be obtained via a “clear, affirmative action” – no more blanket accept-all buttons that obscure granular choices.
Action items
- Update privacy policies – include specific sections on AI processing (if applicable), international transfers, retention periods, and the categories of recipients. Use language that a non-legal audience can understand.
- Implement granular consent – for websites and apps, provide separate consent options for different purposes (e.g., analytics, personalisation, advertising). The DPC’s Cookie Consent Guidance (2023) recommends that refusing consent be as easy as giving it.
- Revise legitimate interest assessments (LIAs) – for processing that relies on legitimate interest, document a balancing test that accounts for the individual’s reasonable expectations. New EDPB guidelines on legitimate interest are expected in 2025; staying ahead will reduce future risk.
- Prepare for data portability enhancements – the Data Governance Act and the upcoming European Data Act will expand data portability rights. Ensure your systems can export data in a structured, machine-readable format on request.
Step 3: Strengthen Data Security and Breach Preparedness
Regulatory changes often come with higher penalties for security failures. The DPC’s recent decisions show that inadequate security measures are a major factor in fines. Additionally, the NIS2 Directive (implemented in Ireland via the NIS2 Bill) will impose stricter cybersecurity obligations on many sectors.
Key security measures
- Encryption at rest and in transit – implement end-to-end encryption for personal data. Use pseudonymisation where possible to reduce risk if a breach occurs.
- Access controls – enforce least-privilege access. Review user permissions regularly, especially for employees who can access sensitive HR or customer data.
- Vulnerability management – conduct regular penetration tests and security audits. For companies using AI systems, the AI Act will require risk management processes for data used in training and inference.
- Breach response plan – update your plan to include new notification timelines. The GDPR requires notification to the DPC within 72 hours. Some sector-specific regulations (e.g., financial services) may impose shorter deadlines.
Case in point: In 2023, the DPC fined a major Irish tech company €345 million for breaches related to cookie consent and data retention. The investigation revealed that security measures were insufficient to prevent unauthorised access to user data. This underscores the need for both technical and administrative safeguards.
Step 4: Invest in Data Protection Training and Culture
Technology alone cannot ensure compliance. Every employee who handles personal data needs to understand their obligations. The DPC’s training resources offer a useful starting point, but tailored internal programmes are more effective.
Training priorities
- Role-specific modules – marketing teams need to know about cookie consent and direct marketing rules; HR teams about retention and special category data; developers about privacy by design and pseudonymisation.
- Annual refresher courses – regulatory changes should prompt updates. The ePrivacy Regulation and AI Act will introduce new concepts that require explanation.
- Data breach drills – run simulated breach exercises to test your response plan. Include tabletop exercises for management to practice decision-making under pressure.
- Accountability and ethics – embed data protection into company values. Employees should feel empowered to raise concerns without fear of reprisal.
Step 5: Appoint (or Empower) a Data Protection Officer
Under the GDPR, a DPO is mandatory for public authorities, organisations that carry out large-scale systematic monitoring, or process special category data on a large scale. However, even if your company is exempt, appointing a dedicated compliance officer is strongly recommended. The DPC increasingly expects organisations to have a visible point of accountability.
Expanding the DPO’s role
- Monitor regulatory developments – the DPO should track changes to the ePrivacy Regulation, Data Governance Act, and AI Act, and advise senior management on required actions.
- Conduct Data Protection Impact Assessments (DPIAs) – especially for new technologies or high-risk processing activities. The AI Act will require a “fundamental rights impact assessment” for high-risk AI systems, which can be integrated with the DPIA process.
- Liaise with the DPC – maintain an open channel. Proactive engagement, such as submitting voluntary consultations or notifying minor issues, demonstrates good faith and can reduce enforcement severity.
- Oversee international transfer compliance – the DPO should inventory all cross-border data flows and ensure appropriate transfer mechanisms are in place. The EU-US Data Privacy Framework is currently under legal challenge; reliance on SCCs with supplementary measures is more defensible.
Step 6: Prepare for Data Breach Notification and Communication
The DPC has been particularly strict about timely breach notifications. In 2024, it issued a €5 million fine to a company that failed to notify a breach within 72 hours and did not adequately document its response. New regulations will likely tighten these requirements.
Elements of a robust breach response plan
- Detection mechanisms – implement logging and monitoring tools that flag unusual activity. For example, an unexpected export of a large database should trigger an alert.
- Internal escalation protocol – define who has authority to declare a breach, notify the DPC, and communicate with affected individuals. Ensure that the process is documented and rehearsed.
- Communication templates – draft pre-approved messages for notifying the DPC (with required metadata), data subjects, and, if applicable, the media. Tailor language to different audiences.
- Coordination with processors – if you use third-party processors, have contractual agreements that require them to notify you immediately upon discovery of a breach. The DPC expects you to manage subcontractors’ breach obligations.
Sector-Specific Considerations for Irish Companies
While the above steps apply generally, certain industries face additional obligations under upcoming regulations.
Financial services
Banks, insurers, and fintech companies are subject to the Central Bank of Ireland’s data governance requirements and the NIS2 Directive. The ePrivacy Regulation will impose stricter rules on marketing communications, including soft opt-in exemptions. Firms should review their consent management for telemarketing and email campaigns.
Healthcare
Health data is special category data. The AI Act will heavily regulate AI systems used for diagnosis or patient triage. Irish healthcare providers using AI tools must ensure transparency and human oversight. The Data Governance Act will also facilitate secondary use of health data for research, requiring robust anonymisation or consent mechanisms.
Technology / SaaS
Irish tech companies that operate cloud platforms, analytics tools, or ad tech are in the DPC’s crosshairs. The ePrivacy Regulation will ban cookie walls and require genuine choice. Companies relying on behavioural advertising should prepare for significant changes to consent architecture.
Monitoring Regulatory Developments and Engaging with Industry
Compliance is not a one-time project. The regulatory environment in Ireland and the EU is evolving rapidly. Here’s how to stay ahead:
- Subscribe to DPC updates – the DPC publishes news and consultations on its website. Sign up for email alerts.
- Join industry associations – groups such as Technology Ireland and Ibec offer regulatory updates and networking opportunities. Their data protection committees often provide practical insights.
- Engage legal counsel specialised in EU data law – a good solicitor can help interpret new regulations and review your compliance posture. Consider firms that regularly interact with the DPC.
- Participate in public consultations – when the EU or DPC open consultations on new rules (e.g., on AI or ePrivacy), submit feedback. This gives you an early view of direction and demonstrates industry responsibility.
Conclusion
Data protection regulatory changes are not a distant threat – they are happening now. Irish companies that take a proactive, structured approach will not only avoid penalties but also build trust with customers and partners. The six steps outlined – comprehensive auditing, updated privacy notices, strengthened security, employee training, empowered DPOs, and robust breach preparedness – form a solid foundation. Add sector-specific adjustments and ongoing monitoring, and your organisation will be well placed to navigate the changing landscape. Start today, because the cost of non-compliance is far greater than the investment in preparation.