TÍTULO:
Uber slapped with record fine for deactivating driver accounts
BAJADA:
Uber faces massive fine for abruptly deactivating driver accounts without warning.
ARTÍCULO:
Uber hit with massive fine
The Dutch data protection authority has fined Uber €825m ($966m) for deactivating driver accounts through automated systems without adequately informing them, according to a 17 August decision.
Second-largest GDPR penalty
The penalty would be the second-largest issued yet under Europe’s General Data Protection Regulation (GDPR). It is behind only a €1.2bn ($1.4bn) fine imposed on Meta by Ireland in 2023 for unlawfully transferring European Facebook users’ data to the United States. Meta is appealing.
Uber to appeal
Uber said it would also appeal. “We strongly disagree with this decision and disproportionate fine,” a spokesperson said, adding that the company takes drivers’ rights seriously and its policies include both human reviews and opportunities for drivers to dispute platform suspensions.
Impact of the decision
The Dutch authority confirmed the decision later on Friday. “Uber has committed serious infringements” by deactivating driver accounts without warning or human involvement, the organization’s deputy chair Monique Verdier said in a statement.
Regulatory actions on tech giants
European regulators have imposed billions of euros in penalties on large US technology companies in recent years under privacy, competition and digital market rules. The EU fined Google €890m ($1.04bn) for anti-competitive actions last month.
Human review importance
GDPR rules ban decisions made solely by computer algorithms when they have a significant impact on people’s lives, such as on employment, saying such decisions require meaningful human review and a way to challenge a decision.
Background of the case
The case against Uber concerns European incidents from 2018 to 2022, stemming initially from a French complaint. It was handled by the Dutch regulator because Uber’s European headquarters are in the Netherlands.
Uber temporarily suspended accounts of some drivers who were suspected of fraud, including when its systems concluded drivers had taken unnecessary detours to inflate fares or accepted trips without intending to complete them. Uber said such suspensions were usually brief, and it did not permanently deactivate such accounts without human review.
Drivers with low customer ratings were sometimes permanently deactivated by computer, the Dutch agency said. Uber disputed that, saying it had never automated permanent deactivation decisions.
The company said one reason it considers the fine disproportionate is that only a small number of drivers were affected, with 126 having been deactivated in Europe as a result of low customer ratings in 2021.
The agency said the fine was calculated as a fraction of Uber’s 2025 annual turnover. Swiss digital-rights group PersonalData.IO – which helped French Uber drivers seek data about the algorithmic decisions affecting their work, eventually leading to the Dutch investigation – said it was pleased with the decision. Founder Paul-Olivier Dehaye said the group is preparing a class action suit against Uber seeking compensation for drivers.