From East to West - Unlock Your Potential
As Asian companies explore global expansion, the European market presents not only abundant opportunities but also a strategic necessity. With its expansive consumer base, Europe offers fertile ground for growth. However, successfully entering this lucrative market requires more than just a solid business plan. Companies, particularly those handling European data must navigate regulations, such as the General Data Protection Regulation (GDPR). In addition the Digital Operational Resilience Act (DORA) and the EU AI Act impose additional layers of compliance.
In this post, we’ll explore the challenges businesses and companies may encounter and outline approaches for successful market entry. While our heart is in Europe, we have customers in Asia where we have helped them enter the EU market with compliance topics.
EU Market Potential: How Southeast Asian Companies Can Navigate DORA, EU AI Act
With the recent introduction of the DORA and the new EU AI Act, data protection and compliance now extends beyond privacy concerns to encompass digital resilience and responsible practices. DORA requires that companies are resilient to digital disruptions, while the EU AI Act sets standards for responsible data usage, transparency and ethical considerations in AI deployments.
As companies aim to enter the this market, regulations underscore the importance of developing a comprehensive Information Security and Compliance Management framework. This framework should go beyond to proactively address these where compliance is essential.
Let’s talk about GDPR - which mandates the protection of EU citizens' personal data, with strict penalties for violations. Not only that, but EU citizens are becoming more and more savvy and knowledgeable when it comes to ensuring their treatment is compliant to GDPR.
Key Data Protection Compliance Areas:
Data Subject Rights: Companies must ensure individuals have control over their personal data, including the right to access, correct, or delete their information.
Lawful Data Processing: Personal data must be processed lawfully, transparently, and for specific purposes.
Incident Reporting: Notify authorities of data breaches within 72 hours.
Cross-Border Transfers: Follow regulations for transferring data outside the EU to maintain protection standards.
Successful Asian Companies in the EU Market
Some Asian companies have shown that strong Information Security and Compliance Management not only enables regulatory compliance but also builds consumer trust.
Grab: Versatility
Originally a ride-hailing and food delivery service, Singapore-based Grab has evolved services into financial technology, insurance, and digital payments. Although its expansion focus has largely been within Asia, Grab’s experience in adapting to diverse regulatory environments has equipped it to navigate similar challenges in Europe to meet various market demands. Companies looking to enter the EU can draw on Grab’s success by building flexible, compliant systems that adapt to regulatory and consumer needs.
Sea Limited: Adapting E-Commerce Standards
Singapore-based company Sea Limited has successfully expanded its e-commerce platform, Shopee, into European markets. This success lies in the ability to adjust its business model to meet regulatory requirements of these markets. Importantly, the company has localized not only its product offerings but its compliance strategies to align with Europe’s rigorous data protection standards. Southeast Asian companies aiming to enter the EU market can learn from this approach by tailoring their e-commerce models to facilitate a smoother entry.Lazada: Data Resilience for Cross-Border E-Commerce
Lazada’s success in entering the EU market can be attributed to its layered approach to data protection. From strengthening its cybersecurity infrastructure and continuously monitoring regulatory changes, Lazada recognises the diversity of data protection expectations within the EU, tailoring its data management practices to meet both EU-wide and country-specific requirements. This localized approach has helped Lazada build a compliant, secure, and trusted platform that appeals to cross-border consumers.AirAsia: Digital Innovation
As a major low-cost airline, AirAsia’s expansion to European destinations underscores the importance of digital innovation and customer data protection. With flights to cities like London and Paris, AirAsia’s data management practices emphasize customer trust, highlighting how data protection can strengthen consumer relationships in new markets. AirAsia’s entry into Europe emphasizes digital innovation and customer experience, aligning with trends in the airline industry.Singapore Airlines: Operational Efficiency
Singapore Airlines' digital transformation efforts emphasize the importance of adapting to regulatory frameworks and enhancing operational efficiency through technology. As the company embraces digitalization to improve customer experience, Southeast Asian companies looking to enter the EU market must similarly navigate compliance with regulations like DORA and the EU AI Act to ensure successful expansion.
Compliance Challenges and Considerations
While we discuss Europe as if it’s one entity, do not overlook the particular approaches that each country, or even state, entity will have. Have a European DPO representative that is competent and knowledgeable. You can refer to either a so-called “DPOaaS2”, a lawyer or law firm, or individual consultant.
While compliance topics can be overly stringent, especially when it comes to the required documentation, you can use this as an exercise at improving your documentation practices. One of the key items is the need for archival, for example.
Do undertake a risk-management-based approached for approaching compliance but also make sure to update the RACI matrix for your organization, especially when it comes to enforcing desponsibility over data ownership.
Strategic Approaches For Effective Compliance Protection Management
For Asian companies entering the European market, meeting regulatory requirements can be complex. A strategic approach can help businesses navigate these challenges effectively. Here’s how:
Conduct a Gap Analysis: Assess current practices against DORA and the EU AI Act requirements to identify compliance gaps.
Invest in Training: Equip teams with knowledge of EU regulations to foster a compliance-focused culture, especially teams that are customer-facing.
Leverage Local Expertise: Partner with European consultants or legal experts who understand the regulatory landscape and to be your EU DPO representative. Certain contracts, or event certain data protection requireemnts would even mandate this!
Implement A Risk-Managed Approach to Data Management: Establish clear data governance practices (such as, a data protection management program) to facilitate compliance with data protection regulations.
Adapt Business Models: Consider adjustments to products and services to align with European market needs and regulatory expectations.
Is Your Business EU-Ready?
- You can use the questionnaire to kick start your discussion!
Unlock your EU Potential now.
Designed for organizations assessing their ISO 27001:2022 readiness, this tool offers to evaluate your information security management system against the new standard.
Note: The results are available to Superuser OÜ, so if you wish to utilize our services please fill in the questionnaire and we will reach out to you. If you ever change your mind, you can reach out to us and request for data deletion.
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