Who is classified as a third party in data processing terms?

In data processing terms, a third party refers specifically to an entity that processes personal data on behalf of the data controller. The data controller is the organization or individual who determines the purposes and means of processing personal data. When a third party is engaged by the data controller to handle data, they must operate under the authority and instructions of the controller, ensuring the data is used appropriately and in compliance with relevant data protection laws.

This classification is crucial for understanding roles and responsibilities in data protection, particularly regarding who is responsible for ensuring the safety and legality of data processing activities. The relationship between data controller and third party must be clearly defined, often through contractual agreements, to manage obligations related to data security, confidentiality, and processing conditions.

In contrast, other options refer to entities or individuals that do not fit the definition of a third party in this context. For instance, the data subject is the person whose data is being processed, while a legal authority that has no relationship to the data does not process it. A public organization maintaining records may also not be processing data on behalf of another entity, hence not qualifying as a third party in data processing terms.