The Court of Justice of the European Union has 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. For context, the case related to 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.
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