Uber has been fined €825 million, approximately $966 million, by the Dutch Data Protection Authority, which concluded the company violated Europe's General Data Protection Regulation (GDPR) by automatically deactivating driver accounts. This penalty is the second-largest ever issued under Europe's GDPR, according to Reuters. The regulator's investigation centered on complaints that Uber terminated driver accounts automatically, without providing sufficient warning or human oversight.
Monique Verdier, the deputy chair of the Dutch authority, stated that the company committed serious infringements. "A computer should not make decisions on its own that have such major consequences," Verdier said.
Uber strongly disagrees with the decision. A company spokesperson told Reuters, "We strongly disagree with this decision and disproportionate fine," and confirmed plans to appeal.
The source of the complaint dates back to 2019, when Brahim Ben Ali, a former Uber driver in France, had his account deactivated. After gathering accounts from over 170 other drivers with similar experiences, he filed the complaint in the Netherlands, the seat of Uber's European headquarters. He was supported by the nonprofit PersonalData.io, which helped him understand how the automated system worked.
Paul-Olivier Dehaye, founder of PersonalData.io, highlighted that a single negative report could trigger such a deactivation. "A driver can complete a thousand journeys with satisfied passengers, but one very serious problem report can have enormous consequences," he said. Dehaye also noted this is the third fine Uber has received from the Dutch regulator, following previous fines of €290 million and €1.3 billion.
The decision by the Dutch regulator underscores the growing scrutiny of algorithmic decision-making in the gig economy. According to Reuters, the fine is the second-largest ever imposed under the GDPR. The investigation focused on how Uber handled driver account deactivations, specifically whether there was adequate human oversight in the process.
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Verdier's comments reflect the broader concern about automated systems making consequential decisions without human intervention. This case could set a precedent for how other companies using automated systems for employment-related decisions are regulated under European law.
For drivers, this case is about more than just a fine. It speaks to their livelihoods and the transparency of the platforms they depend on. Ben Ali's efforts, supported by hundreds of testimonies, have brought attention to the power dynamics between gig economy platforms and their workers.
Uber maintains that its system is fair, with most suspensions being temporary and lasting only a short time. Uber also contends that permanent deactivations always go through human review and that drivers can appeal the outcomes.
But the Dutch regulator's findings suggest otherwise, stating that some drivers were permanently deactivated without any human intervention. The company disputes this claim and plans to fight the fine.
As Uber prepares its appeal, the case remains a significant example of the legal and ethical challenges posed by automated decision-making. It also highlights the importance of regulatory oversight in ensuring such systems are transparent and fair.
The fine is substantial, but it is not the only one Uber has faced in Europe. The company has been under increasing scrutiny from regulators for its data-handling practices and the treatment of its drivers despite this.
This decision could prompt other EU member states to examine their own regulations regarding algorithmic decision-making in the workplace. For Uber, it is a reminder that even the most sophisticated automated systems must operate within the boundaries of the law.
About the Author: This writer covers technology and business regulation with a focus on how algorithmic systems affect workers and consumers. They have written extensively on GDPR, digital rights, and the gig economy.
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Disclaimer: This article is for informational purposes only, and does not constitute legal or financial advice. The details of the case are based on public reports as of the date of publication.
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