The EU’s Adequacy Decision for Brazil: A New Era for Transatlantic Data Transfers

On 5 September 2025, the European Commission announced its intention to adopt an adequacy decision for Brazil, marking a significant milestone in the evolution of international data protection and cross-border data flows. This development is poised to reshape the legal landscape for businesses operating between the European Union (EU) and Brazil, offering new opportunities and reducing compliance burdens. In this article, we provide a comprehensive overview of the adequacy decision process, its implications for data controllers and processors, and practical considerations for organisations engaged in EU-Brazil data exchanges.

What Is an Adequacy Decision?

Under Article 45 of the General Data Protection Regulation (GDPR), the European Commission may determine that a non-EU country ensures an “adequate level of protection” for personal data comparable to that guaranteed within the EU. An adequacy decision allows personal data to flow freely from the EU to that third country without requiring additional safeguards such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs). The process involves a detailed assessment of the third country’s legal framework, including its data protection laws, enforcement mechanisms, and respect for fundamental rights.

The Path to Adequacy: EU-Brazil Relations

The European Commission’s move towards recognising Brazil as providing adequate protection follows extensive dialogue with Brazilian authorities. Brazil’s General Data Protection Law (Lei Geral de Proteção de Dados Pessoais – LGPD), which came into force in 2020, has been central to this process. The LGPD establishes comprehensive rules on personal data processing, mirroring many GDPR principles such as lawfulness, transparency, purpose limitation, data minimisation, and security measures. Furthermore, Brazil has established an independent supervisory authority—the Autoridade Nacional de Proteção de Dados (ANPD)—tasked with monitoring compliance and enforcing sanctions.

The adequacy assessment also considers factors such as judicial redress mechanisms for individuals, restrictions on onward transfers of EU-originating data from Brazil to other jurisdictions, and effective remedies against misuse or abuse of personal information.

Key Implications for Businesses

1. Streamlined Data Transfers

Once adopted, the adequacy decision will enable organisations in the EU to transfer personal data to Brazilian entities without implementing additional transfer tools or conducting complex transfer impact assessments. This will be particularly beneficial for multinational corporations with operations in both regions and sectors reliant on cross-border data flows—such as technology, finance, healthcare, and e-commerce.

2. Reduced Compliance Burden

The removal of requirements for SCCs or BCRs simplifies contractual arrangements and reduces administrative overheads. Organisations can focus resources on substantive compliance with local laws rather than duplicative documentation or risk assessments.

3. Enhanced Legal Certainty

An adequacy decision provides greater legal certainty regarding the permissibility of transfers and reduces exposure to regulatory enforcement actions or challenges by data subjects. It also signals mutual trust between the EU and Brazil in their respective privacy regimes.

4. Ongoing Monitoring and Potential Reassessment

It is important to note that adequacy decisions are not permanent; they are subject to periodic review by the European Commission. Should there be material changes in Brazil’s legal framework or enforcement practices that undermine protection levels, the Commission may suspend or revoke adequacy status.

Practical Steps for Organisations

Organisations should take proactive steps in anticipation of the adequacy decision:

• Review Existing Data Flows: Map current transfers involving Brazil to identify where SCCs or other transfer mechanisms may be replaced.
• Update Internal Policies: Amend privacy notices and internal policies to reflect changes in transfer mechanisms.
• Monitor Regulatory Developments: Stay informed about any conditions attached to the adequacy decision or subsequent reviews.
• Engage with Brazilian Partners: Ensure that Brazilian recipients understand their ongoing obligations under both LGPD and GDPR-derived standards.

Conclusion

The forthcoming EU adequacy decision for Brazil represents a landmark development in global data governance. By facilitating seamless transatlantic data flows while upholding high standards of privacy protection, it offers tangible benefits for businesses and individuals alike. At Thomson Snell & Passmore, our team is ready to assist clients in navigating these changes — ensuring compliance while unlocking new opportunities across borders.

For further advice on international data transfers or updates on regulatory developments affecting your business operations between the EU and Brazil, please contact our Commercial Team.

This article is based on official communications from the European Commission as well as legal updates regarding the adequacy process between the EU and Brazil.