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Lemmy and GDPR - What is the current state?
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Wither GDPR applies to an individual instance will be up to those running the instance to decide.
If you decide it does, then you need to do a few things. Number one is read up advice on compliance with GDPR.
Being able to delete data alone doesn't mean GDPR compliance. I'm thinking about the need for privacy notices on sign up, retention schedules for data, lawful basis of processing, records of processing activities.. Data subjects have numerous rights, which apply depend on the lawful basis you're processing under.
I'd suggest that larger general instances might want to read up more urgently than smaller single focus "hobby" instances.
edit: more I think about this, I think there is an moral responsibility for the developers to help those running instances comply. If GDPR does not apply to an instance, it is still good practice to allow uses to delete their data, etc.. Also, art. 20 of GDPR is the right to portability. Interesting to see how this applies to fediverse platforms like Lemmy.
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Isn't the key operating word here business?
With no advertising on the line and no operations currently in place operating at anything but a loss there isn't a commercial interest at stake.
Governments also have to comply with GDPR. They also have no commercial interest in the personal data.