Dutch Data Protection Authority Imposes €825m Fine on Uber for Algorithmic Driver Account Deactivations

The Dutch data protection authority has fined Uber €825m ($966 million) for deactivating driver accounts via automated systems without adequate prior notification, based on a 17 August decision.

This penalty ranks as the second-largest GDPR enforcement action to date, trailing only a €1.2bn ($1.4bn) fine imposed on Meta by Ireland in 2023 for unlawful data transfers to the U.S. Uber has stated it will appeal the ruling.

“We strongly disagree with this decision and disproportionate fine,” Uber’s spokesperson said, emphasizing that the company upholds driver rights through human reviews and dispute mechanisms for platform suspensions.

The Dutch authority confirmed the decision on Friday, citing “serious infringements” by Uber for disabling driver accounts without warning or human oversight.

“From one moment to the next, they no longer had any income… A computer should not make decisions with such major consequences,” said the authority’s deputy chair, Monique Verdier.

Under GDPR regulations, automated decisions significantly impacting individuals’ livelihoods—such as employment—require human review and a dispute process. The case stems from incidents between 2018 and 2022, initially flagged in France and prosecuted by Dutch regulators due to Uber’s European headquarters location.

European regulators have commonly imposed billions in penalties on major U.S. tech firms under privacy and digital market laws. Recently, the EU fined Google €890m ($1.04 billion) for anti-competitive practices.

While Meta, Google, Apple, and Amazon face multiple fines, many headline penalties are reduced or overturned after prolonged appeals. U.S. officials have noted these penalties as a primary source of friction in transatlantic economic relations.

Uber temporarily suspended accounts of drivers suspected of fraud, including those exploiting surge pricing or refusing trips. The company claims temporary suspensions are brief and final deactivations always involve human review.

However, the Dutch agency alleges that low-rated drivers were permanently deactivated automatically, a claim Uber disputes. The company argues the fine is excessive, noting only 126 drivers were permanently deactivated across Europe in 2021 due to customer ratings.

A Swiss digital-rights group, PersonalData.IO, which assisted French Uber drivers in accessing algorithmic data leading to the investigation, praised the ruling. Founder Paul-Olivier Dehaye indicated the group is preparing a class-action lawsuit for driver compensation.

Source link