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    Home /  Insights /  Memos, Newsletters and Alerts /  Memo
    S&C Memos

    When Worlds Collide: EU Data Protection, Artificial Intelligence and Trade Secrets

    The Court of Justice of the European Union Rules on Disclosure Obligations for Companies Using Automated Decision-Making

    March 10, 2025 | min read |
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    On February 27, 2025, the Court of Justice of the European Union (“CJEU”) ruled on the interaction of the EU’s General Data Protection Rules with trade secrets and artificial intelligence. The CJEU ruled that a person affected by a decision taken by a company based on automated decision-making may require the company to provide a clear explanation of the process involved and the criteria used to reach the decision. The CJEU also ruled that companies (i) need to provide information in a concise, transparent, intelligible and easily accessible form; and (ii) may not simply refuse to provide the information by invoking trade secret protection. Businesses must therefore be prepared to provide persons affected by their automated decision-making, authorities and courts, with sufficient and easily digestible information about the logic and method through which automated decisions are taken.

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