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The Dutch Data Protection Authority has fined ride-hailing giant Uber €825 million (around $966 million) for allegedly using automated software and algorithms to suspend and terminate drivers’ accounts.
The penalty is the second-largest fine ever imposed for violations of the European Union’s General Data Protection Regulation (GDPR). The Dutch regulator said Uber had failed to provide drivers with adequate advance notice and had relied on automated decision-making without sufficient human review when closing accounts.
The Dutch Data Protection Authority said an investigation found that Uber used algorithms to flag drivers for alleged fraud or low ratings and automatically suspend or terminate their accounts.
Monique Verdier, vice-president of the Dutch regulator, said Uber had committed serious violations of data protection rules.
She said a computer should not be allowed to make a decision on its own when it can have such a serious impact on a person’s life and livelihood. For drivers, losing access to their Uber account can mean an immediate loss of income, she added.
Uber rejected the ruling and described the size of the fine as disproportionate. The company said most driver suspensions were temporary and that no account was permanently terminated without human oversight.
The company also said drivers retained the right to appeal account-related decisions. Uber said it would challenge the fine before a higher court.
The case began with a complaint filed by Ibrahim Ben Ali, a former Uber driver in France. After his account was abruptly deactivated in 2019, he collected information and evidence from more than 170 other affected drivers.
As Uber’s European headquarters are located in Amsterdam, Ben Ali filed the complaint with the Dutch data protection authority. Switzerland-based digital rights organisation PersonalData.IO provided technical assistance to the drivers during the legal proceedings.
The Dutch regulator has previously fined Uber €290 million and €10 million over allegations that the company failed to adequately protect drivers’ personal data.
