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A data processor is an entity that processes personal data on behalf of a data controller, following the controller's instructions. The data controller determines the purposes and means of processing personal data, while the data processor carries out the actual processing activities.
Understanding the roles and responsibilities of data controllers and processors is crucial for legal compliance, as both parties have specific obligations that must be met to protect individuals' privacy and data security. This distinction is particularly important in the context of privacy laws, such as the GDPR, where the controller is responsible for ensuring compliance with data protection principles, and the processor must follow those directives. The data processor is vital because it handles specific tasks, like data storage or analysis, that the controller may not have the resources or expertise to manage in-house.