Data Security And Privacy Compliance: A Challenge In Mergers And Acquisitions
- IJLLR Journal
- 14 minutes ago
- 1 min read
Sejal Jain, Advocate, Rajasthan Bar Council
ABSTRACT
M&A has unique challenges in terms of data security and privacy compliance in an age where data has become one of the most significant corporate assets. M&A transactions are especially susceptible to privacy violations and cyber threats because of the extensive interchange of sensitive and personal data during due diligence, negotiations, and post-closing integration. Organisations involved in M&A are under greater scrutiny to protect personal data and set up strong compliance frameworks in light of the Digital Personal Data Protection Act, 2023 (DPDP Act) and international regulations like the GDPR. With an emphasis on the duties of Data Fiduciaries and Processors, the legal requirements under the DPDP Act, and the potential repercussions of ignoring concerns about privacy, this article examines the crucial role that data privacy plays in M&A transactions. Examining real-world scenarios like Facebook's attempt to acquire TikTok and Verizon-Yahoo Acquisition, this article highlights the adverse impact of data protection on financial, legal, and reputational issues. In order to present data privacy as a key component of successful M&A results, it concludes by offering strategic ideas for risk mitigation, such as data minimization, anonymization, contractual safeguards, and technology-enabled compliance measures.
