What is the impact of GDPR on companies outside the EU?

The impact of GDPR on companies outside the EU is significant, as they must comply with GDPR regulations if they handle the personal data of EU residents. This requirement stems from the extraterritorial scope of GDPR, which means that the regulation applies not only to companies based within the EU but also to those located outside if their operations target or collect data from individuals in the EU.

This is a crucial aspect of GDPR, designed to ensure that the personal data of EU citizens is protected regardless of where processing takes place. Therefore, any business that interacts with EU residents, whether through offering goods, services, or monitoring behavior, is obligated to adhere to GDPR's principles and requirements. This compliance ensures consistency in the protection of personal data across borders and reinforces the European Union's commitment to privacy rights.

The other options don't accurately represent the nature of GDPR's reach. Companies outside the EU cannot claim exemption solely based on their location, nor can they choose to comply based on their local laws if there is a direct connection to the EU. Additionally, being required to follow only national data protection laws disregards GDPR's clear stipulation regarding the handling of EU residents' personal data.