That makes sense to me. I just Googled around like a fool and got here https://en.wikipedia.org/wiki/Personality_rights#Germany

It seems like they're trying to follow local law. What a nightmare to have to manage all jurisdictions around such a product. Surprised it didn't kill image generation entirely.

Yea, especially when they know all that work will be completely pointless in a few years when open source / local models will be just as good and won't have any legal limitations, so people will be generating fake images of famous people like crazy with nothing stopping them