Autonomous Ride-Hail Operating

Regulatory risk in Germany for Ride-Hail Operators in context with Autonomous Vehicles

Ride-hail companies often delegate operational responsibilities to drivers, considering them as independent entrepreneurs. Consequently, the primary duty of care seems to rest with the drivers, who are obliged to adhere to passenger transport regulations. However, the emergence of autonomous vehicles introduces a potential shift in this paradigm. Ride-hail companies might become AV fleet owners and, therefore, be subject to more stringent regulations under the Autonomous Vehicle Approval and Operation Regulation (AFGBV). This regulation outlines specific duties of care for both manufacturer and owner.

For fleet operators, their liability depends on whether they are also manufacturers or vehicle owners. If they are owners, strict owner liability applies based on German Road Traffic Act. Producers of automated driving systems could in the future face a higher risk of potential liability under the AI Liability Directive (EU), which introduces a causality presumption to simplify the burden of proof in AI-related accidents. This directive also extends warranty liability under product liability laws and producer liability against the manufacturer.

In Germany, as in many other countries, strict liability extends to vehicle owners, even in highly or fully automated driving scenarios. This approach makes it more straightforward for injured parties to seek compensation through compulsory insurance rather than pursuing manufacturers for AI programming faults. Principles of producer liability and product liability further bolster this framework. Seeking compensation directly from the manufacturer might become more relevant in the future because of the AI Liability Directive.

There’s a proposal for an EU Directive introducing a causality presumption to ease legal actions against AI manufacturers in the event of accidents. This pending legislation could reshape the liability landscape for autonomous vehicles. Also, the litigation environment is evolving. Previously, model declaratory actions filed by qualified institutions/associations were the primary avenue for legal action. However, a new corrective action suit has emerged. This legal action, introduced since June 25, 2023, runs parallel to model declaratory actions and is designed to provide consumers with more accessible routes for litigation. Most of all, it provides an immediately enforceable judgment. The intention is to empower consumers, particularly in cases related to product liability, and extends beyond specific consumer protection provisions under EU law, encompassing various disputes between consumers and entrepreneurs, even in cross-border contexts within the EU. All in all, there is a shift in the German and European legal landscape aimed at facilitating collective redress for consumers.

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