European Union: Court of Justice of the European Union issued ruling in lawsuit on automated decision-making including profiling regarding assessment of the creditworthiness of a natural person

Description

Court of Justice of the European Union issued ruling in lawsuit on automated decision-making including profiling regarding assessment of the creditworthiness of a natural person

On 27 February 2025, the Court of Justice of the European Union ruled in Case C-203/22 that individuals subject to automated credit assessments must receive an explanation allowing them to understand and challenge the decision. The case concerned a refusal by a mobile operator to grant a contract based on an automated credit check. The Court clarified that controllers must describe the principles applied in decision-making, including how personal data influenced the outcome, rather than merely disclosing the algorithm. If trade secrets or third-party data are involved, national authorities must assess the balance between transparency and confidentiality.

Original source

Scope

Policy Area
Data governance
Policy Instrument
Data protection regulation
Regulated Economic Activity
ML and AI development
Implementation Level
supranational
Government Branch
judiciary
Government Body
court

Complete timeline of this policy change

Hide details
2022-03-16
under deliberation

On 16 March 2022, the Administrative Court of Vienna lodged a request for a preliminary ruling from…

2024-09-12
under deliberation

On 12 September 2024, the Advocate General Richard de la Tour of the Court of Justice of the Europe…

2025-02-27
in force

On 27 February 2025, the Court of Justice of the European Union ruled in Case C-203/22 that individ…

We use cookies and other technologies to perform analytics on our website. By opting in, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platform. See our Privacy Policy to learn more about the use of data and your rights.