GDPR fallout: Indian startups block EU users from online transactions

Indian startups have been trying to block European users from buying products or services from their platform to avoid complications after the General Data Protection Regulation (GDPR) kicked in.

GDPR, that kicked in on May 25, requires companies doing business in Europe to give greater control to EU citizens with regard to their own data.

Data Intelligence startup Paper.vc has made changes in its policies to comply with the same.

"We've recently updated our terms of use to disallow services to EU subjects. While we maintain our own high standards for personal information, making laws extra-territorial is a messy business. India is a sovereign nation and we will comply its laws," said Vivek Durai, Co-Founder, Paper.vc.

While Paper.vc has made its stance clear, experts suggest not many startups in India can be called GDPR-compliant for now.

"Very few start-ups in India are likely to be GDPR-compliant as the significant investment in terms of people, resources and technology may not have taken place. Building a mechanism around data preservation policies as mandated under the regulation would take time, but it is important though for the start-up ecosystem to take quick action as substantial fines can be imposed in case of non-compliance," said Arpinder Singh, Partner and Head- India and Emerging Markets, Fraud Investigation and Dispute Services at EY.

Not all Indian startups are expected to see massive impact of the European Union's data protection regulation, companies across sectors such as Software as Services (SAAS) and travel are likely to get impacted given the global reach of their businesses.