Expanding into Europe is an exciting opportunity for tech businesses — especially in fast-moving sectors like fintech and SaaS. But growth in this region also means entering a highly regulated market. From data protection to cybersecurity, compliance in Europe is not just a legal box to tick — it’s a fundamental business requirement.

Unlike the U.S., where companies face a patchwork of over 20 state-level privacy laws, Europe operates under more unified — though still complex — EU regulations. Understanding these frameworks is crucial, especially with new rules like DORA (Digital Operational Resilience Act) coming into force. Here’s what you need to know.

DORA: The New Cyber Resilience Standard for Financial Services

The Digital Operational Resilience Act (DORA), set to be enforced from January 2025, represents a major shift in how digital finance is regulated in the EU. It applies to a wide range of entities — including fintechs, crypto providers and cloud-based service providers — ensuring that operational resilience is embedded into every layer of their tech infrastructure.

Key elements of DORA include:

• ICT risk management: Firms must have strict internal frameworks to manage technology-related risks.
• Incident reporting: Significant tech failures or breaches must be reported within tight timelines.
• Third-party oversight: Fintechs must monitor the resilience of their technology partners, including cloud providers.
• Regular testing: Companies will need to conduct frequent, rigorous testing of their systems for operational risk.

DORA isn’t just another regulation — it’s a clear signal that digital financial services must meet the same resilience expectations as traditional financial institutions. The regulation marks a major shift in how the European financial sector manages digital resilience, raising standards and expanding the scope of existing regulations. While it sets a strong framework, uncertainties remain around how some obligations will be implemented — especially during the transitional phase in 2025, when much reporting will still rely on manual processes. Full compliance will require not just quality data and evolving AI tools, but also human oversight and deep technical understanding.

GDPR: Upkeeping the gold standard for data privacy

Since its enforcement in 2018, the General Data Protection Regulation (GDPR) has set the benchmark for global data privacy. It affects any company handling EU citizen data, regardless of where the business is based.

Key GDPR implications for expanding startups:

• Strict consent rules: You need clear, informed user consent for data collection.
• Right to be forgotten: Customers can request full deletion of their data.
• Cross-border data transfers: Specific safeguards are required when transferring data outside the EU.

GDPR violations can be costly — not just financially (fines can reach €20 million or 4% of global revenue), but in terms of brand trust. In contrast to the fragmented U.S. system, GDPR provides one comprehensive, albeit stringent, set of rules that apply across all 27 EU member states. 

It also impacts British residents as the UK worked with the EU to create the legislation. UK GDPR, an almost identical regulation, went into effect following Brexit.

Outsourcing to a specialist tech sales team with in-region experience can ease the pressure. These experts not only understand the local regulatory landscape, but can help ensure your go-to-market strategy is aligned with compliance expectations from day one, giving you peace of mind as you expand across Europe.

The Cyber Resilience Act: What you need to know

As the NIS2 Directive takes effect and the Cyber Resilience Act (CRA) approaches full enforcement, tech companies entering the EU marketplace — especially those delivering digital products — must pay close attention to evolving cybersecurity standards. These frameworks aim to create a more secure digital environment across the EU by promoting principles like “secure by design,” incident transparency and coordinated response to cyber threats.

Although both NIS2 and the CRA share similar goals — such as improving risk management and encouraging information sharing — they focus on different areas:

• NIS2 targets network and information systems used by essential service providers (like energy, health and digital infrastructure).
  
  
• CRA applies to the hardware and software manufacturers, importers  and distributors of digital products across the EU.

The challenge? These regulations in the EU and beyond are complex and require organizations to adopt a proactive, structured approach to compliance — or risk facing serious penalties.

While the growing regulatory landscape might seem daunting, it also presents an opportunity. Companies that prioritize cybersecurity and compliance early gain a competitive edge by building trust with customers and regulators. One of the most effective ways to manage this complexity is to outsource to a team with deep regulatory and market experience in Europe. Sales Force Europe brings both go-to-market execution and a working knowledge of regional compliance requirements. Our local teams understand how NIS2 and the CRA are being interpreted across EU member states, helping you accelerate entry while staying secure and compliant.

To make the transition smoother and reduce regulatory risk, here’s a checklist of practical steps for your expansion strategy:

• Conduct an applicability assessment. Identify whether your business falls under the scope of NIS2, the CRA, or both.
  
  
• Create a product and systems inventory. Classify your digital products and infrastructure to assess exposure and obligations.
  
  
• Perform a gap analysis. Evaluate current protocols against new requirements to uncover compliance gaps.
  
  
• Develop a strategic compliance roadmap. Build a phased implementation plan that aligns compliance goals with your product lifecycle and sales expansion.
  
  
• Integrate with existing workflows. Where possible, align NIS2 and CRA requirements with your current conformity assessment processes.
  
  
• Leverage local expertise. Partner with experienced professionals in-region to navigate national nuances and evolving guidance.
  
  

Europe’s cybersecurity regulations are tightening, but with the right strategy — and the right team — you can turn compliance from a challenge into a strategic advantage. Let Sales Force Europe help you launch smart, secure and scalable tech across the continent.

The EU AI Act: What you need to know

Alongside DORA and GDPR, the EU is also leading the way globally with its newly adopted AI Act — the world’s first comprehensive law governing artificial intelligence. This regulation classifies AI systems based on risk levels (minimal, limited, high  and unacceptable), placing strict requirements on those considered “high risk” — such as AI used in credit scoring, biometric identification  and critical infrastructure. For companies leveraging AI in fintech, healthtech or recruitment, this means ensuring transparency, data quality, human oversight and accountability in system design and deployment. Non-compliance could result in significant penalties. 

Navigating these evolving AI rules can be complex, but having in-region experts who understand both the legal landscape and the local tech ecosystem can help you launch responsibly and confidently in this tightly regulated market.

Are you ready for regulation?

Europe may be unified in principle, but regulatory enforcement can vary between member states. For example, the interpretation of GDPR or the implementation of DORA may differ subtly in France, Germany  and Spain. That’s why having local expertise on the ground can make all the difference.

At Sales Force Europe, our team doesn’t just bring go-to-market experience — we also understand the regulatory context in which your business will operate. Our in-region professionals:

• Understand local compliance requirements in fintech, SaaS  and regulated tech
• Speak the language — both literally and in terms of compliance nuance
• Help you structure your sales and data practices to avoid regulatory friction
• Act as an extension of your team, reducing risk while accelerating market entry

Compliance in Europe is complex, but it’s also consistent — and increasingly aligned around robust digital standards. For tech companies, especially in fintech, understanding and embracing this environment isn’t just about avoiding penalties. It’s about building trust, credibility and long-term growth in a mature and opportunity-rich market.

With Sales Force Europe’s European sales agents’ in-house expertise and regional reach, we help you scale with confidence — backed by our friendly sales team that brings local knowledge and regulatory fluency.

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