According to the GDPR, the territorial scope of the regulation applies to the processing of personal data of data subjects who are in the Union by a controller or processor not established in the Union, where the processing activities are related to: (a) the offering of goods or services, irrespective of whether a payment of the data subject is required, to such data subjects in the Union; or (b) the monitoring of their behavior as far as their behavior takes place within the Union1. In this scenario, Bioface is not established in the Union, but it is collecting photographs of data subjects in the Union and using a facial recognition algorithm to identify them. This constitutes monitoring of their behavior within the Union, and therefore triggers the application of the GDPR. The other options are not correct because: (A) Bioface does not have any establishment in the Union, as it only collects data from web-based services, which does not imply the existence of stable arrangements in the Union2; (B) Bioface is not offering services in the Union, as it only targets government agencies and companies in the US and Canada, and does not intend to provide its service to data subjects in the Union3; Bioface collects data from subjects and uses it for automated processing, but this is not a sufficient criterion to determine the territorial scope of the GDPR, as it does not relate to the offering of goods or services or the monitoring of behavior in the Union4. Reference: 1: Article 3(2) of the GDPR; 2: EDPB Guidelines, paragraph 20; 3: EDPB Guidelines, paragraph 38; 4: EDPB Guidelines, paragraph 50.