On October 23, the Data Ethics Commission set up by the German government in 2018 handed over and presented its report. The key recommendations for action in the report include a risk-adapted regulatory system for the use of algorithmic systems with regulation graded according to potential harm and the establishment or strengthening of sector-specific supervisory institutions for the risk-adequate control of algorithmic systems. The Commission also recommends the creation of a nationwide “Competence Center for Algorithmic Systems”.
In addition, the legal establishment of regulatory instruments such as ex-ante approval procedures or prior checks by supervisory institutions, transparency obligations and the obligation to log data records and software program sequences used as well as risk impact assessments is recommended. Other points include the establishment of an EU regulation with basic requirements for the permissibility of algorithmic systems and specific legal requirements for personality-sensitive profiling, ranging from quality requirements to absolute limits. The German government will examine the recommendations when further developing the regulatory framework.