What does a data processor do?

The role of a data processor is primarily to handle data on behalf of the data controller. A data controller is the entity that determines the purposes and means of processing personal data, while the data processor carries out the processing tasks as instructed by the data controller. This involves operations such as collecting, storing, organizing, and retrieving data as directed without making decisions regarding the data's usage or purpose.

The distinction is important because a data processor does not manage or own the data itself — it acts under the authority of the data controller, ensuring that the data is processed in compliance with applicable laws and the controller's instructions. This relationship is usually defined through a contractual agreement that outlines the responsibilities and limitations of the data processor in relation to the data it handles.

Understanding this role helps clarify how organizations can effectively manage data while ensuring compliance with data protection regulations, highlighting the importance of clear responsibilities and boundaries between data controllers and processors.