Data Privacy, Cybersecurity, and Corporate Compliance: Evolving Legal Obligations for Businesses in the Digital Economy

Abstract

In the rapidly evolving digital economy, businesses face unprecedented legal and operational challenges in navigating data privacy, cybersecurity, and corporate compliance. This study examined how modern organisations adapt to the growing complexity of digital regulatory frameworks, including the General Data Protection Regulation (GDPR), the California Privacy Rights Act (CPRA), and India's Digital Personal Data Protection Act (DPDPA). Through a mixed-methods approach, including policy analysis and corporate survey data, the research identified a significant increase in cybersecurity regulations, with a parallel rise in compliance costs and technological investments. The findings revealed disparities in compliance maturity between large corporations and small-to-medium enterprises, with the latter facing greater challenges in meeting evolving legal obligations. Additionally, while many organizations have adopted cybersecurity tools, gaps remain in employee training, AI governance, and third-party risk management. The study emphasizes the importance of integrated risk management, cross-functional regulatory alignment, and culture-driven security awareness. Technological innovation, especially in privacy-enhancing technologies (PETs) and regulatory intelligence tools, emerged as a critical enabler of compliance efficiency. This paper contributes to the understanding of how firms are operationalizing compliance within a fragmented legal environment and offers practical recommendations for enhancing resilience and accountability. Future research is recommended to explore sector-specific challenges and the long-term impact of new regulations such as the EU AI Act and U.S. cyber incident disclosure mandates.