Lifecycle Based Legal Governance of Algorithmic Decision Making in Digital Business Platforms

Untung Rahardja; Mitra Trima Des Sincer Putri; Dwi Cahyono; Alfri Adiwijaya; Rizky Fredrin Terizla

doi:10.34306/9h3a2039

Authors

Untung Rahardja Universitas Raharja, Indonesia Author https://orcid.org/0000-0002-2166-2412
Mitra Trima Des Sincer Putri Universitas Raharja, Indonesia Author https://orcid.org/0009-0007-2493-3808
Dwi Cahyono University of Muhammadiyah Jember, Indonesia Author https://orcid.org/0000-0001-9951-560X
Alfri Adiwijaya Universitas Raharja, Indonesia Author https://orcid.org/0009-0008-4049-5286
Rizky Fredrin Terizla Rey Incorporation, United States Author https://orcid.org/0009-0009-7817-0265

DOI:

https://doi.org/10.34306/9h3a2039

Keywords:

Algorithmic Decision, Digital Business Platforms, Legal Governance, Transparency, Data Protection

Abstract

The increasing use of algorithmic decision-making in digital business platforms has transformed how organizations evaluate users, personalize services, allocate resources, detect risks, and make commercially significant decisions. Although algorithmic systems improve efficiency and scalability, their expanding role creates legal challenges concerning transparency, accountability, fairness, data protection, and human oversight. This study examines the legal governance of algorithmic decision-making in digital business platforms and identifies legal principles required to ensure accountable and responsible algorithmic practices. The research employs a normative legal approach using statutory, conceptual, and comparative legal analysis. The study analyzes legal principles concerning algorithmic accountability, transparency, data protection, procedural fairness, and human oversight to develop a comprehensive governance framework. The findings indicate that existing regulatory approaches remain fragmented, creating uncertainty regarding legal responsibility among platform operators, technology providers, and other stakeholders. Effective governance therefore requires a lifecycle-based regulatory approach covering algorithmic design, data processing, deployment, monitoring, evaluation, and review. The proposed framework integrates transparency obligations, accountability mechanisms, risk-based oversight, data protection safeguards, and meaningful human intervention. This study contributes a conceptual legal governance framework for algorithmic decision-making in digital business platforms and provides a basis for policymakers and platform operators to strengthen legal accountability, protect individual rights, and promote responsible digital business innovation.

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Author Biographies

Untung Rahardja, Universitas Raharja, Indonesia

Faculty of Economics and Business
Mitra Trima Des Sincer Putri, Universitas Raharja, Indonesia

Faculty of Economics and Business
Dwi Cahyono, University of Muhammadiyah Jember, Indonesia

Faculty of Economic and Business
Alfri Adiwijaya, Universitas Raharja, Indonesia

Faculty of Economics and Business
Rizky Fredrin Terizla, Rey Incorporation, United States

Department of Law and Technology

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