Considering the fast evolution of digital transformation, attention has been shifted to the question of company liability for data protection. Based upon, aspects of data protection, including legal, technical, and organizational aspects, are tackled in the present study, which focuses on shared liability and compliance challenges in cross border environments. The present study concludes that privacy-by-design systems, strong cybersecurity practices, and staff training certainly mitigate liability risks. It also concludes that gaps in standardized global rule frameworks and barriers at organizational levels also intensify susceptibilities. The contribution of the present study to the literature is that it provides in-depth perceptions on risk mitigation strategies and policy recommendations. Future research should focus on the dynamic nature of cyber threats and regulatory discrepancies. In environments involving new technologies such as AI, future research should be led by the development of global harmonized frameworks to address the emerging challenges. By tackling the underlying issue of liability, companies can create trust, ensure compliance, and facilitate sustainable digital transformation.