Phrase

Czech-founded AI translation management platform for global software and content teams

Grammarly

AI writing assistant for grammar, style, clarity, and generative content creation

Phrase

Strong

20/25

Grammarly

Strong

17/25

Score Breakdown

DimensionPhraseGrammarly

Data Residency

Where is your data stored and processed?

Phrase: Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

Grammarly: Data hosted exclusively in US AWS East; no EU or regional residency option

4/5

Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

2/5

Data hosted exclusively in US AWS East; no EU or regional residency option

Legal Jurisdiction

Which laws govern the company and your data?

Phrase: Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

Grammarly: US Delaware corporation subject to CLOUD Act; GDPR compliance via SCCs and DPA

5/5

Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

2/5

US Delaware corporation subject to CLOUD Act; GDPR compliance via SCCs and DPA

Data Retention & Training

Is your data used for model training?

Phrase: Customer translation memories and content explicitly not used for model training; configurable retention available.

Grammarly: User data not sold; limited processing for product improvement with user controls

4/5

Customer translation memories and content explicitly not used for model training; configurable retention available.

4/5

User data not sold; limited processing for product improvement with user controls

Certifications

ISO 27001, SOC 2, Cyber Essentials, etc.

Phrase: ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

Grammarly: Extensive certification: SOC 2 Type II, ISO 27001/18/701, ISO 42001

3/5

ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

5/5

Extensive certification: SOC 2 Type II, ISO 27001/18/701, ISO 42001

Regulatory Fit

Suitability for regulated industries and professional services

Phrase: Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

Grammarly: Strong enterprise compliance posture; US-only hosting limits suitability for EU data residency mandates

4/5

Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

4/5

Strong enterprise compliance posture; US-only hosting limits suitability for EU data residency mandates

Total Score

20/25

17/25

Best For

Phrase

Best for organisations requiring broad certification coverage (SOC 2 Type II, ISO 27001, ISO 27018); privacy-conscious teams who need strong data retention controls; teams on a tight budget.

Grammarly

Best for EU-headquartered organisations needing maximum data sovereignty; regulated industries (UOOU, CNIL); privacy-conscious teams who need strong data retention controls.

Detailed Comparison

Grammarly vs Phrase: Trust & Compliance Comparison

Grammarly (Grammarly, Inc., US) scores 17/25 overall with a Silver (Strong) trust badge. AI writing assistant for grammar, style, clarity, and generative content creation. Phrase (Phrase, CZ) scores 20/25 with a Silver (Strong) trust badge. Czech-founded AI translation management platform for global software and content teams.

Dimension-by-Dimension Breakdown

#### Data Residency

Phrase leads with 4/5 vs 2/5.

●Grammarly (2/5): Data hosted exclusively in US AWS East; no EU or regional residency option

●Phrase (4/5): Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

#### Legal Jurisdiction

Phrase leads with 5/5 vs 2/5.

●Grammarly (2/5): US Delaware corporation subject to CLOUD Act; GDPR compliance via SCCs and DPA

●Phrase (5/5): Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

#### Data Retention & Training

Both score equally at 4/5.

●Grammarly (4/5): User data not sold; limited processing for product improvement with user controls

●Phrase (4/5): Customer translation memories and content explicitly not used for model training; configurable retention available.

#### Certifications

Grammarly leads with 5/5 vs 3/5.

●Grammarly (5/5): Extensive certification: SOC 2 Type II, ISO 27001/18/701, ISO 42001

●Phrase (3/5): ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

#### Regulatory Fit

Both score equally at 4/5.

●Grammarly (4/5): Strong enterprise compliance posture; US-only hosting limits suitability for EU data residency mandates

●Phrase (4/5): Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

Certifications at a Glance

Certification	Grammarly	Phrase
ISO 27001	Yes	Yes
ISO 27018	Yes	No
ISO 27701	Yes	No
ISO 42001	Yes	No
SOC 2 Type II	Yes	No

Overall Verdict

Phrase has a clear trust advantage, scoring 20/25 compared to Grammarly's 17/25. Phrase particularly excels in data residency, legal jurisdiction.

Frequently Asked Questions

Which is better for EU compliance, Phrase or Grammarly?

Phrase has a TrustKit score of 20/25 while Grammarly scores 17/25. Phrase currently rates higher across data residency, legal jurisdiction, data retention, certifications, and regulatory fit.

How do Phrase and Grammarly compare on data residency?

Phrase scores 4/5 for data residency (Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.), while Grammarly scores 2/5 (Data hosted exclusively in US AWS East; no EU or regional residency option).

Are Phrase and Grammarly GDPR compliant?

Both tools are assessed across five compliance dimensions. Phrase has a regulatory fit score of 4/5 and Grammarly scores 4/5. Check the full comparison above for a detailed breakdown.

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