Dutch regulator fines Uber $966m for automating driver suspensions

A Dutch regulatory body has levied a record-breaking fine of €825 million ($966 million) against ride-hailing giant Uber for using automated systems to suspend driver accounts without sufficient notification, according to a decision dated 17 August. This penalty marks the second-largest under the European Union's General Data Protection Regulation (GDPR), trailing only a €1.2 billion ($1.4 billion) fine imposed on Meta in 2023 over data transfers involving European Facebook users. Uber has announced plans to appeal the ruling. The Dutch data protection authority alleged that Uber violated GDPR provisions by deactivating driver accounts through automated systems without warning or human oversight. Deputy chair of the authority, Monique Verdier, stated that Uber had committed serious infringements, noting that drivers could lose their income abruptly due to algorithmic decisions. She emphasized that critical life decisions, particularly those impacting livelihoods, must involve human review and allow individuals to contest outcomes. The investigation into Uber began following a complaint from French drivers and was conducted by the Dutch regulator since Uber's European headquarters are located in the Netherlands. The case covers incidents from 2018 to 2022, focusing on instances where Uber's systems automatically suspended accounts based on suspicions of fraudulent activity, such as taking unnecessary detours to inflate fares or accepting trips without intent to complete them. Uber claimed these suspensions were typically temporary and required human review before becoming permanent. According to the Dutch authority, some drivers with low customer ratings were permanently deactivated by computer systems. Uber denied this, asserting that it had never automated permanent deactivation decisions. The company argued that the fine was disproportionate, citing that only a limited number of drivers were affected, specifically, 126 drivers in Europe were deactivated in 2021 due to low customer ratings. The fine was determined as a fraction of Uber’s projected 2025 annual turnover. The Swiss digital-rights group PersonalData.IO, which supported French Uber drivers in seeking transparency regarding algorithmic decisions affecting their work, expressed satisfaction with the outcome. Founder Paul-Olivier Dehaye mentioned that the group is preparing a class-action lawsuit against Uber to seek compensation for affected drivers. European regulators have increasingly imposed substantial penalties on major U.S. tech firms under privacy, competition, and digital market regulations. Recently, the EU fined Google €890 million ($1.04 billion) for anti-competitive practices. Companies such as Meta, Google, Apple, and Amazon face numerous fines, although many are subject to lengthy appeals processes that can reduce or overturn initial rulings. U.S. officials have highlighted these fines as a significant point of contention in transatlantic economic relations. Under GDPR, decisions made exclusively by computer algorithms that significantly affect individuals' lives, such as employment status, are prohibited unless they undergo meaningful human review and provide avenues for challenging the decision. The Dutch authority's findings indicate that Uber failed to meet these requirements, resulting in the hefty fine. Uber maintains that it respects drivers' rights and incorporates both human reviews and mechanisms for drivers to dispute platform decisions.