Faced with legislation that vary from country to country, managers must skillfully navigate between compliance with local rules and the requirements of global regulations. There are many challenges, but they also constitute opportunities for companies capable of adopting agile and well -informed strategies. Start-ups, often looking for rapid growth in international markets, find themselves particularly exposed to these issues. But how to manage this increasing legal complexity? How to ensure that the company respects both local rules and international standards, without risking fines or sanctions that could compromise its growth and reputation?
The complexity of global regulations: a reality
Market globalization has led to a multiplication of regulations, each country imposing specific standards concerning fields such as data protection, environmental standards, taxation or even labor legislation. Companies, and in particular ambitious start-ups, must thus deal with local legislation which can come into conflict with international standards. The task becomes all the more complex when these rules are evolving, as is the case with the recent reforms on the protection of personal data or new regulations on carbon emissions.
Take the example of General Data Protection Regulations (GDPR) in Europe, which highlighted the challenge of reconciling strict data protection standards with much more lax regulations in other parts of the world. Companies must navigate between the local requirements of each country and international obligations that impose global, sometimes divergent standards.
Legal challenges related to differences
The most obvious challenges that companies face when they operate in several jurisdictions are the complexity of conformity, the costs and time required to adapt, and the risk of offense in the event of non-compliance. Take three key areas where these challenges are particularly visible:
1/ Personal data protection: a global puzzle
The GDPR, which entered into force in May 2018, is one of the strictest and most passed on world regulations. While it requires companies to comply with very precise rules concerning the collection, processing and storage of personal data from European citizens, this regulation also extends to non-European companies which collect data on European residents.
However, these regulations come up against sometimes very different local laws. In the United States, for example, there is no federal law as strict as the GDPR. American companies must therefore juggle between the rigor of the GDPR and the less restrictive legislation in the United States. For a French start-up that operates at both levels, the management of these contradictory regulations becomes an administrative and legal headache.
2/ International taxation
International start-ups are also faced with various tax regulations. The tax principles differ from one country to another, which complicates tax management and can result in additional costs for the company. In addition, the Organization for Economic Cooperation and Development (OECD) has recently proposed world tax reforms in order to combat tax evasion and strengthen the taxation of multinationals. But here again, tensions exist between local tax rules and international agreements. For example, a country like Ireland, with its low tax rate of companies, can contradict the expectations of the OECD, thus creating dilemmas for companies which must navigate between respect for local regulations and global expectations.
3/Environmental standards
The regulations on CO2 emissions, waste management, or the use of natural resources varies strongly from one country to another. THE European Green Dealfor example, imposes ambitious objectives for reducing greenhouse gas emissions, while allowing countries like the United States or China to maintain much higher levels of emissions. For a French company that operates in these different countries, the management of its ecological practices requires constant adaptation to these contrasting, sometimes expensive and time -consuming regulations.
Solutions to navigate between local and international laws
Companies have several ways to overcome the challenges linked to the differences between local and international laws. The most common solutions are based on organizational adaptation, investment in technology, and specialized legal expertise.
1/ Create teams dedicated to compliance management
Many companies create teams dedicated to international compliance, called Compliance Officerswhich are responsible for monitoring local and international regulations. These regulation experts are essential to ensure that the company complies not only local law, but also global standards, while anticipating future modifications.
French start-ups, often smaller but more agile, have the possibility of integrating conformity into their DNA from their launch. For example, Doctoliba French start-up that is revolutionizing online medical appointments, puts particular emphasis on compliance with regulations relating to the protection of health data, ensuring both compliance with the GDPR and local public health standards.
2/ The use of technology to ensure compliance
Companies, in particular start-ups, are increasingly investing in technological tools to automate compliance management. Platforms like OneTrust Or Trustarc help companies follow regulatory changes in real time and to ensure that they comply with local and international standards. These solutions also reduce human errors and optimize compliance management processes.
3/ International legal expertise
Due to the complexity of international legislation, many companies use law firms specializing in international regulation. These experts help companies to navigate in the global legal framework by providing advice on best practices and by supporting them in the implementation of solutions adapted to each market.
Examples of French start-ups faced with global regulations
French start-ups often find themselves at the forefront of challenges related to the management of global regulations. Companies like Blablacar,, Veepee (formerly sale-privee), or Miraklhad to face these challenges when they developed internationally. Blablacar, for example, had to adjust its data protection practices during its expansion in Europe, by integrating from the start of the RGPD processes while respecting local legislation on the security and confidentiality of personal information.
