Phrase

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

Lokalise

Latvian localisation platform with AI translation and workflow automation for product teams

Phrase

Strong

20/25

Lokalise

Strong

20/25

Score Breakdown

DimensionPhraseLokalise

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.

Lokalise: Data hosted in EU cloud infrastructure; third-party MT providers may involve additional data transfers per their own policies.

4/5

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

4/5

Data hosted in EU cloud infrastructure; third-party MT providers may involve additional data transfers per their own policies.

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.

Lokalise: Incorporated in Latvia as Lokalise SIA; fully subject to EU law and GDPR with no US parent company.

5/5

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

5/5

Incorporated in Latvia as Lokalise SIA; fully subject to EU law and GDPR with no US parent company.

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.

Lokalise: Customer translation content is not used to train AI models; data retention is configurable per account.

4/5

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

4/5

Customer translation content is not used to train AI models; data retention is configurable per account.

Certifications

ISO 27001, SOC 2, Cyber Essentials, etc.

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

Lokalise: ISO 27001 certified with enterprise security controls; SOC 2 audit not yet confirmed publicly.

3/5

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

3/5

ISO 27001 certified with enterprise security controls; SOC 2 audit not yet confirmed publicly.

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.

Lokalise: Strong GDPR compliance with DPA on all plans, SCCs for third-party integrations, and audit logging available on enterprise plans.

4/5

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

4/5

Strong GDPR compliance with DPA on all plans, SCCs for third-party integrations, and audit logging available on enterprise plans.

Total Score

20/25

Best For

Phrase

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

Lokalise

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

Detailed Comparison

Lokalise vs Phrase: Trust & Compliance Comparison

Lokalise (Lokalise, LV) scores 20/25 overall with a Silver (Strong) trust badge. Latvian localisation platform with AI translation and workflow automation for product teams. 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

Both score equally at 4/5.

●Lokalise (4/5): Data hosted in EU cloud infrastructure; third-party MT providers may involve additional data transfers per their own policies.

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

#### Legal Jurisdiction

Both score equally at 5/5.

●Lokalise (5/5): Incorporated in Latvia as Lokalise SIA; fully subject to EU law and GDPR with no US parent company.

●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.

●Lokalise (4/5): Customer translation content is not used to train AI models; data retention is configurable per account.

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

#### Certifications

Both score equally at 3/5.

●Lokalise (3/5): ISO 27001 certified with enterprise security controls; SOC 2 audit not yet confirmed publicly.

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

#### Regulatory Fit

Both score equally at 4/5.

●Lokalise (4/5): Strong GDPR compliance with DPA on all plans, SCCs for third-party integrations, and audit logging available on enterprise plans.

●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	Lokalise	Phrase
ISO 27001	Yes	Yes

Overall Verdict

Lokalise and Phrase are closely matched on trust and compliance, with scores of 20/25 and 20/25 respectively. The right choice depends on your specific regulatory requirements and existing technology stack.

Frequently Asked Questions

Which is better for EU compliance, Phrase or Lokalise?

Phrase has a TrustKit score of 20/25 while Lokalise scores 20/25. Both tools are currently rated equally across data residency, legal jurisdiction, data retention, certifications, and regulatory fit.

How do Phrase and Lokalise 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 Lokalise scores 4/5 (Data hosted in EU cloud infrastructure; third-party MT providers may involve additional data transfers per their own policies.).

Are Phrase and Lokalise GDPR compliant?

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

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