When a third country or specified entity ensures an adequate level of protection essentially equivalent to that ensured within the European Union, it is awarded an "adequacy designation." This designation is significant under the EU's data protection framework (GDPR), as it allows for the free flow of personal data from the EU to the third country without additional safeguards being necessary. An adequacy decision affirms that the non-EU country has similar protective laws and practices for personal data as those existing within the EU, thereby simplifying international transactions and data processing operations involving EU citizens' data.