GDPR Article 27 Explained: EU Representative Requirement for Non-EU Controllers and Processors (With Practical Examples)

GDPR Article 27 is one of the most important yet frequently overlooked provisions of the General Data Protection Regulation, especially by organizations based outside the European Union. While many non-EU companies are aware that GDPR can apply extraterritorially, far fewer understand the practical obligations that arise once the regulation applies to them. One of those obligations is the requirement to appoint an EU representative.

Article 27 ensures that data protection authorities and EU data subjects are not left without a point of contact when personal data is processed by organizations established outside the EU. It creates a legal bridge between non-EU entities and the European regulatory framework, making enforcement, communication, and accountability possible in cross-border data processing scenarios.


The Legal Purpose of GDPR Article 27

GDPR Article 27 exists to solve a practical enforcement problem. Without a local presence, non-EU organizations could process EU residents’ data without being easily reachable by regulators or data subjects. Article 27 addresses this by requiring certain non-EU controllers and processors to appoint a representative established within the EU.

The representative acts as a contact point, not as a substitute controller or processor. Responsibility for GDPR compliance remains with the non-EU entity.

Article 27 supports core GDPR principles such as transparency, accountability, and effective enforcement.


When GDPR Article 27 Applies

Territorial Scope and Article 3 Connection

Article 27 only applies when GDPR applies to a non-EU organization under Article 3(2). This means the organization:

  • Is not established in the EU, and

  • Offers goods or services to individuals in the EU, or

  • Monitors the behavior of individuals in the EU

If GDPR does not apply under Article 3(2), Article 27 does not apply.

Controllers and Processors Covered

Both controllers and processors established outside the EU may be subject to Article 27 if they fall under the GDPR’s territorial scope.

This includes:

  • SaaS platforms

  • Online marketplaces

  • Mobile app developers

  • Advertising technology providers

  • Analytics services

  • Payment processors

  • Cloud service providers

The obligation is role-agnostic. What matters is whether GDPR applies and whether an exemption is available.


Who Must Appoint an EU Representative

Non-EU organizations must appoint an EU representative if all of the following conditions are met:

  • They are not established in the EU

  • GDPR applies to their processing activities

  • No exemption under Article 27(2) applies

The requirement is mandatory and ongoing.

Controllers

Non-EU controllers that determine the purposes and means of processing EU personal data must appoint a representative unless exempt.

Processors

Non-EU processors acting on behalf of EU controllers must also appoint a representative if GDPR applies and no exemption is available.


Article 27 Exemptions

Article 27(2) provides limited exemptions from the representative requirement.

An EU representative is not required if all of the following conditions are met:

  • The processing is occasional

  • The processing does not include large-scale processing of special categories of data

  • The processing does not include large-scale processing of data relating to criminal convictions and offenses

  • The processing is unlikely to result in a risk to the rights and freedoms of natural persons

These conditions are cumulative. If any one of them is not met, the exemption does not apply.

In practice, very few organizations qualify for this exemption, especially those operating online services or apps.


What Does “Occasional Processing” Mean?

Occasional processing is not explicitly defined in the GDPR, but regulatory guidance interprets it narrowly.

Processing is not considered occasional if it is:

  • Ongoing

  • Recurrent

  • Part of a core business activity

  • Regularly repeated

Examples of non-occasional processing include:

  • Operating a website that tracks EU users

  • Running a subscription service

  • Providing cloud-based software

  • Delivering targeted advertising

  • Collecting customer data continuously

Most commercial digital services do not meet the occasional processing criterion.


The Role of the EU Representative

Core Function

The EU representative acts as a contact point for:

  • Supervisory authorities

  • Data subjects

They facilitate communication and ensure that regulators and individuals can effectively exercise rights and enforcement mechanisms.

What the Representative Must Do

The EU representative must:

  • Be designated in writing

  • Be established in an EU Member State where affected data subjects are located

  • Maintain records of processing activities when required

  • Cooperate with supervisory authorities upon request

  • Transmit communications to the non-EU organization

  • Receive data subject requests and regulatory inquiries

What the Representative Does Not Do

The EU representative:

  • Is not a data controller or processor

  • Does not assume GDPR compliance responsibility

  • Does not determine processing purposes or means

  • Is not personally liable for GDPR violations (unless separate obligations are breached)

Legal responsibility remains fully with the non-EU controller or processor.


Where Must the EU Representative Be Located?

The representative must be established in one of the EU Member States where:

  • The data subjects whose personal data is processed are located, or

  • The processing activities relate to individuals in that Member State

For organizations targeting multiple EU countries, selecting a representative in one Member State is generally sufficient, provided that representative can communicate with other authorities if needed.


Formal Appointment Requirements

The appointment of an EU representative must:

  • Be made in writing

  • Clearly identify the representative

  • Define the scope of representation

  • Allow supervisory authorities to address the representative directly

  • Be reflected in privacy notices

Failure to formally document the appointment can itself constitute a GDPR violation.


Transparency Obligations Under Article 27

Organizations required to appoint a representative must include the representative’s details in:

  • Privacy notices

  • Information provided under Articles 13 and 14

  • Communications with supervisory authorities

This ensures transparency for data subjects and regulators alike.


Liability and Enforcement Under Article 27

Appointing an EU representative does not shield a non-EU organization from enforcement action.

Supervisory authorities may:

  • Contact the representative for information

  • Use the representative as an enforcement gateway

  • Issue fines directly to the non-EU organization

In some cases, regulators may also take action against representatives who fail to cooperate, although primary liability remains with the non-EU entity.


Five Practical Examples of GDPR Article 27 in Action

Example 1: US-Based SaaS Platform Serving EU Businesses

A software company based in the United States provides project management software to companies across Europe. It processes employee data of EU users on a continuous basis.

The company is not established in the EU, but GDPR applies because it offers services to EU data subjects.

The processing is not occasional, and it involves regular handling of personal data.

Under Article 27, the company must appoint an EU representative.

The representative receives data subject requests, cooperates with supervisory authorities, and ensures communication channels remain open.


Example 2: Mobile App Developer Tracking EU Users

A mobile fitness app developed in Canada collects usage data, geolocation information, and behavioral analytics from users in several EU countries.

The app monitors behavior and processes personal data continuously.

No exemption applies.

The developer must appoint an EU representative and disclose the representative’s details in its privacy notice.

Failure to do so exposes the company to regulatory penalties.


Example 3: Non-EU Processor Providing Cloud Hosting Services

A cloud infrastructure provider based in Asia hosts databases for EU-based companies and processes personal data on their behalf.

Even though the provider is a processor, GDPR applies because it processes EU personal data.

The processing is ongoing and core to the business.

The provider must appoint an EU representative, independent of its EU customers’ compliance obligations.


Example 4: Online Marketplace Targeting EU Consumers

An e-commerce marketplace based outside the EU allows EU consumers to purchase goods and tracks browsing behavior for marketing and fraud prevention.

The marketplace actively targets EU consumers and processes data continuously.

Article 27 requires the appointment of an EU representative.

The representative acts as a contact point for complaints, access requests, and regulatory inquiries.


Example 5: Non-EU Research Organization Collecting EU Survey Data

A research institute based outside the EU conducts recurring surveys involving EU participants, collecting demographic and opinion data.

Although the data may not be sensitive, the processing is systematic and repeated.

The exemption does not apply.

An EU representative must be appointed to ensure data subject rights can be exercised and authorities can engage effectively.


Common Misunderstandings About Article 27

Many organizations misunderstand Article 27 in the following ways:

  • Assuming GDPR applies only to EU-based companies

  • Believing that appointing a representative transfers liability

  • Confusing the EU representative with a data protection officer

  • Assuming processors are exempt

  • Relying on informal or verbal representation arrangements

  • Ignoring transparency obligations

These misconceptions often lead to enforcement actions.


Article 27 vs Data Protection Officer Requirements

The EU representative is not the same as a data protection officer.

Key differences include:

  • The representative is a local contact point

  • The data protection officer is an internal or external advisor

  • Appointment criteria differ

  • One does not replace the other

Some organizations must appoint both.


Relationship Between Article 27 and Article 30

In some cases, the EU representative may be responsible for maintaining records of processing activities on behalf of the non-EU organization.

This does not transfer compliance responsibility but ensures accessibility for supervisory authorities.


Practical Steps to Comply With GDPR Article 27

Organizations should:

  1. Assess whether GDPR applies under Article 3(2)

  2. Determine whether an exemption applies

  3. Select a suitable EU representative

  4. Document the appointment in writing

  5. Update privacy notices accordingly

  6. Establish communication and escalation procedures

  7. Train internal teams on representative interaction

  8. Review the arrangement regularly

Compliance should be proactive rather than reactive.


Consequences of Non-Compliance

Failure to comply with Article 27 can result in:

  • Regulatory fines

  • Enforcement actions

  • Reputational damage

  • Suspension of EU-related processing activities

  • Increased scrutiny from supervisory authorities

Article 27 violations are often identified during broader GDPR audits.


Conclusion: Why GDPR Article 27 Is a Critical Compliance Obligation

GDPR Article 27 plays a crucial role in ensuring that EU data protection rights remain enforceable in a global digital economy. It ensures accessibility, accountability, and transparency when personal data crosses borders.

For non-EU organizations, appointing an EU representative is not a formality but a legal requirement with real compliance implications. Proper implementation of Article 27 demonstrates respect for EU data protection standards and significantly reduces regulatory risk.

Organizations that understand and comply with Article 27 position themselves as responsible data actors in an increasingly regulated global environment.