Netherlands to fine Uber 825 million euros: "It violated drivers' rights"

The Dutch Data Protection Authority (AP) has decided to fine Uber 825 million euros (966 million dollars) under European data protection rules, after the company disabled drivers' accounts using automated systems without properly informing them, according to a decision from August 17.

This fine will be the second largest ever imposed under the European Union's General Data Protection Regulation (GDPR), following the 1.2 billion euro fine imposed on Meta by Ireland in 2023. Uber has announced that it will file an appeal.

"We disagree with this decision and the disproportionate fine," said a company spokesperson, adding that the company takes drivers' rights seriously and that its current policy includes both human review and the ability for drivers to appeal their suspension from the platform.

GDPR rules prohibit decision-making based solely on a computerized algorithm when it has a significant impact on people's lives. According to the rules, such decisions require meaningful human review as well as the ability to appeal them.

"The AP determined that Uber violated drivers' rights, and in particular the right not to be subject to automated decision-making that has significant consequences," the decision stated. The authority also noted a violation of the right to receive information, stating that it viewed this as a serious matter justifying the high fine.

The case concerns events in Europe that occurred between 2020 and 2022 and began following a complaint filed in France. The handling of the case was transferred to the Dutch regulator because Uber's European headquarters is located in the Netherlands.

Uber temporarily suspended the accounts of drivers suspected of fraud, including cases where systems concluded that drivers took unnecessary detours to inflate the price of the trip. Uber stated that such suspensions were usually short and that it did not permanently disable accounts without human review. According to the company, the number of affected drivers was small, noting that 126 drivers in Europe were suspended in 2021 due to low customer ratings.