CIPP/E Study Guide
IAPP Training · Module 4 - BoK IV.A

Module 4 · Territorial and material scope

Article 3 sets territorial scope - and only one criterion need be met: the establishment criterion (Art 3(1)), the targeting/monitoring criterion (Art 3(2)), or public international law (Art 3(3)). Article 2 sets material scope (automated, or non-automated in a filing system) with key exclusions. Guidelines 3/2018 and Opinion 04/2024 refine establishment and the main establishment.

Territorial scope - Article 3 (only ONE need apply)
CriterionArticleTrigger
EstablishmentArt 3(1)Processing by an EU-established controller/processor, regardless of where the processing occurs
Targeting / monitoringArt 3(2)Controller/processor not established in the EU processing data of subjects in the EU, where activities relate to offering goods or services or monitoring behaviour
Public international lawArt 3(3)Where Member State law applies by virtue of public international law
Guidelines 3/2018 - processor establishment

Processor status alone does NOT create controller establishment. A controller is not deemed established in the EU just because it uses an EU-based processor - per Guidelines 3/2018.

Opinion 04/2024 (Article 4(16)(a), main establishment): the "place of central administration" can be the main establishment where the decision-making power exists. The one-stop-shop applies with cross-border processing and a clear authority structure.

Material scope (Article 2) applies to processing wholly or partly by automated means (note: this is not the same as automated decision-making) and to non-automated processing that forms part of a filing system.

  • Exclusion: activities outside the scope of EU law
  • Exclusion: law enforcement and public security
  • Exclusion: purely personal or household activities

Key terms - quick answers

What is “Establishment criterion”?
Article 3(1): the GDPR applies to processing by an EU-established controller/processor, regardless of where processing occurs.
What is “Targeting/monitoring criterion”?
Article 3(2): the GDPR reaches non-EU controllers/processors that offer goods or services to, or monitor the behaviour of, data subjects in the EU.
What is “Filing system”?
A structured set of personal data accessible according to specific criteria; brings non-automated processing within material scope.
What is “Guidelines 3/2018”?
EDPB guidelines on the territorial scope of the GDPR (Article 3).