The Dutch Data Protection Authority announced Friday that it has levied a fine of €825 million (about $964 million) against ride‑hailing giant Uber. The penalty stems from the company’s use of automated software that could suspend driver accounts—sometimes permanently—without any human oversight or opportunity for the driver to correct a mistake.
What the regulator found
According to the authority, Uber’s system violated the European Union’s General Data Protection Regulation, which bars fully automated decision‑making that produces legal or similarly significant effects without a human check. The agency also said Uber failed to inform drivers that such automated decisions were being made, a requirement under the GDPR.
The violations occurred over a four‑year period, from 2018 through 2022. During that time, drivers reported account suspensions that were enacted by the algorithm alone, leaving them unable to earn a living and with little recourse to appeal the action.
Uber’s response
Uber issued a written statement saying it disagrees with the authority’s findings and will appeal the fine. The company emphasized that it takes driver earnings seriously and claims to have instituted human reviews, safeguards, and an appeal process for drivers who believe a mistake was made. Uber also noted that the policies cited by the regulator were “historic” and had been discontinued years ago.
Previous penalties
This is the fourth fine the Dutch regulator has imposed on Uber. The largest prior penalty was in 2024, when the authority fined the company €290 million (about $324 million) for allegedly transferring personal data of European drivers to the United States without adequate protection.
Implications for the industry
The sizable penalty underscores the growing scrutiny of tech companies’ data‑handling practices in Europe. Regulators are increasingly willing to enforce the GDPR’s provisions on automated decision‑making, especially when those decisions affect individuals’ livelihoods.
For drivers, the ruling may prompt Uber to reinstate more robust human oversight of account suspensions, potentially reducing the risk of erroneous deactivations. For other gig‑economy platforms, the case serves as a warning that reliance on fully automated systems without transparent safeguards could attract similar enforcement actions.
Next steps
Uber has indicated it will appeal the decision, which could extend the legal process for several months. Meanwhile, the Dutch authority’s fine will be payable unless the appeal overturns or reduces the amount. The case is likely to be watched closely by regulators in other EU member states as they consider how to apply GDPR rules to algorithmic decision‑making across the digital economy.
Original reporting: KTBS 3 (Shreveport) — read the source article.
