Dutch regulator fines Uber €825 mil. for letting algorithm deactivate drivers' accounts
The Dutch Data Protection Authority (AP) has fined Uber €825 million for deactivating driver accounts through automated systems and without adequately informing them. This violates Europe’s General Data Protection Regulation (GDPR), the AP said in a decision made on Monday, Reuters reported after seeing the decision.
According to the AP, Uber’s automated systems temporarily suspended the accounts of multiple drivers who were suspected of fraud in Europe between 2020 and 2022. In some cases, drivers with low customer ratings were suspended permanently.
That violates the drivers' rights under the GDPR, which bans companies from letting a computer algorithm make decisions that have a significant impact on people’s lives, the AP said. Being suspended from a platform individual drivers depend upon for their livelihood is considered to be substantial.
“The AP has determined that Uber violated drivers’ rights, specifically the right not to be subject to automated decision-making that has significant consequences,” Reuters quoted from the AP’s decision. “Uber has also violated their right to be informed.”
The investigation stemmed from a complaint by Uber drivers in France. The AP handled the investigation because Uber's European headquarters is located in the Netherlands.
Uber said it would appeal against the decision, arguing that it did not permanently deactivate accounts without human review. The company told Reuters that it no longer makes permanent decisions about deactivation solely through automated systems.
“We strongly disagree with this decision and disproportionate fine,” an Uber spokesperson told Reuters. They said Uber takes drivers’ rights seriously and its current policies include human reviews and opportunities for drivers to dispute.
It is believed to be the second-highest penalty issued under the GDPR to date, only being topped by a 1.2-billion euro fine imposed on Meta in 2023. That decision was issued by an Irish regulator for accusations that Meta unlawfully transferred European Facebook user data to the United States. Meta also appealed against that fine.