A formal decision by the European Commission that a non-EU country provides a level of data protection essentially equivalent to the EU, allowing free data transfers there.
When the European Commission issues an adequacy decision, personal data can flow to that country as if it stayed within the EU, without additional safeguards such as Standard Contractual Clauses. The decision is based on the country's laws, oversight, and redress for individuals.
Adequacy decisions are reviewed periodically and can be challenged or withdrawn, so organizations should not treat them as permanent guarantees.
Related frameworks
KaitoSec