Uber has been fined 825 million euros due to the suspension of automated drivers.
The Dutch data protection authority has imposed a fine of €825 million (approximately $966 million) on Uber for terminating driver accounts through automated systems without adequately informing the drivers. This penalty is the second-largest ever imposed under the General Data Protection Regulation (GDPR). Reuters reported this decision after examining a document dated August 17. The authority, known as the AP, confirmed the ruling but did not provide additional comments. Uber indicated that it would appeal the decision.
What the ruling states
The GDPR prohibits decisions based solely on algorithms when they significantly impact an individual. Such decisions necessitate substantial human involvement and a way for the individual to contest them. For drivers, losing account access translates to a loss of employment, which is why the regulator viewed the suspension as more than just a change in account status. The AP stated, “Uber violated drivers’ rights, specifically the right not to be subject to automated decision-making that has significant consequences.” The ruling also noted that “Uber has violated the right to be informed,” leading the regulator to deem the situation serious enough to justify the substantial fine.
Details of Uber's actions
Uber temporarily suspended driver accounts that its systems flagged for suspected fraud. The reporting highlighted two specific instances where the algorithms determined that some drivers had taken unnecessary detours to increase fares, while others were flagged for accepting trips they did not plan to complete. Uber stated that these suspensions were generally brief and that it did not permanently deactivate accounts without a human review. However, the AP mentioned that in some cases, Uber’s software permanently removed drivers who had low customer ratings. Uber contested this, asserting that it has never automated a permanent deactivation.
Uber's response
A spokesperson stated, “We strongly disagree with this decision and the disproportionate fine.” The company emphasized its commitment to drivers' rights and noted that current policies include human review and a method for drivers to contest suspensions. Uber informed DutchNews that it no longer solely relies on automated systems for permanent deactivations. To support its claim that the penalty is excessive, Uber provided a statistic indicating that low customer ratings caused 126 drivers to lose their accounts across Europe in 2021. The AP has not released a total figure for how many drivers were affected by the automated suspensions.
Origins of the case
The ruling pertains to incidents occurring in Europe between 2020 and 2022 and originated from a complaint by drivers in France who were suspended on allegations of fraud. The Dutch regulator took over the case due to Uber's European headquarters located in Amsterdam, making the AP the lead authority for Uber throughout the EU.
This marks the fourth fine imposed on Uber by the Dutch authorities, with each successive penalty being larger than the previous one. The AP fined Uber €600,000 in 2018 and issued a €10 million fine in early 2024 concerning drivers' privacy rights, followed by a €290 million penalty for transferring driver data to the United States, which Uber is also contesting. This latest decision is nearly three times larger than the €290 million fine.
Only one GDPR fine has been larger
In 2023, Ireland’s regulator imposed a €1.2 billion fine on Meta for illegally transferring data of European Facebook users to the United States, which is currently under appeal. Thus, both of the largest GDPR penalties on record have been issued by regulators in small member states housing the European headquarters of major American companies. Reuters has noted that lengthy appeals often lead to reductions or cancellations of significant fines imposed on large tech firms.
Transatlantic tensions
European regulators have levied billions of euros in fines against American tech companies under privacy, competition, and digital market regulations, targeting firms like Meta, Google, Apple, and Amazon repeatedly. Former U.S. President Donald Trump has criticized this trend, while a senior U.S. State Department official recently referred to the fines as the “biggest single source of friction” in U.S.-EU economic relations.
Automated decisions regarding workers
The GDPR provision that Uber was found to have breached governs decisions made about individuals by software. The issue of what decisions can be automated regarding workers has arisen in other contexts as well. Recent reports discussed an AI store manager that required a reminder of its rules before terminating an employee. Additionally, Uber drivers have faced scrutiny regarding data questions outside Europe, including a proposal from a surveillance company to convert Uber and Lyft drivers into a roaming camera network.
Next steps
Uber plans to appeal the ruling, though it has not disclosed when it will do so. Appeals of this nature in the Netherlands are first directed to the courts rather than returning to the regulatory body. The AP confirmed the ruling but did not provide any further comments, and neither the regulator nor Uber has released the full text of the decision. Disagreements over the facts persist, as the AP claims low-rated drivers sometimes lost their accounts solely through automated systems, while Uber maintains that this is not the case. This discrepancy will be the subject of the appeal. Uber
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Uber has been fined 825 million euros due to the suspension of automated drivers.
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