Uber faces an €825 million ($966 million) fine from the Dutch Data Protection Authority (DPA) for using automated systems to deactivate driver accounts without adequately informing them or providing human intervention. This penalty, detailed in an August 17 decision, is the second-largest ever issued under Europe's General Data Protection Regulation (GDPR). The DPA stated that Uber committed "serious infringements" by allowing computers to make decisions with significant consequences for drivers, who could lose their income instantly without warning.
The fine is second only to a €1.2 billion penalty imposed on Meta by Ireland in 2023 for unlawful data transfers. Uber has announced its intention to appeal the decision, stating strong disagreement with what it calls a "disproportionate fine." The company claims its policies include human reviews and opportunities for drivers to dispute suspensions. Uber also argues that only a small number of drivers were affected, citing 126 deactivations in Europe due to low customer ratings in 2021.
The case, which originated from a French complaint, covers incidents from 2018 to 2022 and was handled by the Dutch regulator due to Uber's European headquarters being located in the Netherlands. The GDPR prohibits decisions made solely by algorithms if they significantly impact individuals' lives, mandating meaningful human review and a challenge process. While Uber acknowledged temporary automated suspensions for suspected fraud, it disputed the DPA's claim of automated permanent deactivations for low ratings, asserting it has never automated such decisions. The fine's amount was calculated as a fraction of Uber's projected 2025 annual turnover.
Swiss digital-rights group PersonalData.io, instrumental in bringing the case to the Dutch authorities after helping French Uber drivers seek data on algorithmic decisions, expressed satisfaction with the ruling. The group's founder, Paul-Olivier Dehaye, indicated plans to initiate a class action lawsuit against Uber to seek compensation for affected drivers.
