Transatlantic Data Economy Simplified: European Commission Adopts Adequacy Decision For EU-US Data Privacy Framework

On 10 July 2023,the European Commission adopted its adequacy decision concluding that the EU-US Data Privacy Framework provides an adequate level of protection for personal data transferred from the European Union (EU) to US companies. Approved by the US following President Joe Biden's executive order in October 2022, the framework is designed to enable the sharing of personal data between the EU and the US without the need for additional data protection safeguards.

With immediate effect, the adequacy decision provides a new lawful basis for transatlantic data transfers from the EU to the US for organizations that certify under the EU-US Data Privacy Framework. European Commissioner for Justice Didier Reynders said that 'personal data can now flow freely and safely from the European Economic Area to the United States'.