Dutch Regulator Issues $966M Fine to Uber for Automated Driver Suspensions
By Toby Sterling
Details and Implications of the Dutch Data Protection Authority's Fine
Background of the Fine
AMSTERDAM, Aug 21 (Reuters) - The Dutch Data Protection Authority (AP) has decided to fine Uber €825 million ($966 million) under European data protection rules for deactivating driver accounts through automated systems without adequately informing them, according to an August 17 decision reviewed by Reuters.
Comparison with Other Major GDPR Fines
The penalty would be the second-largest ever issued under Europe's General Data Protection Regulation, behind a €1.2 billion fine imposed on Meta by Ireland in 2023 for unlawfully transferring European Facebook users' data to the United States, which Meta is appealing.
Uber's Response
Uber said it would also appeal.
Company Statement
"We strongly disagree with this decision and disproportionate fine," a spokesperson said, adding that the company takes drivers' rights seriously and its current policies include both human reviews and opportunities for drivers to dispute platform suspensions.
Regulator's Position
The AP confirmed the decision, but could not immediately comment further.
GDPR Rules on Automated Decision-Making
GDPR rules ban decisions made solely by computer algorithm when they have a significant impact on people's lives, saying such decisions require meaningful human review and a way to challenge a decision.
Specific Violations Cited
"The AP has determined that Uber violated drivers' rights, specifically the right not to be subject to automated decision-making that has...significant consequences," the decision said.
"Uber has also violated the right to be informed," the decision said, saying the agency considered it a serious matter worthy of the large fine.
Case Details
Timeline and Origin
The case concerns European incidents in 2020 to 2022, stemming initially from a French complaint. It was handled by the Dutch regulator because Uber's European headquarters are in the Netherlands.
Nature of Automated Suspensions
Uber temporarily suspended 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 says it did not permanently deactivate such accounts without human review.
Permanent Deactivations and Policy Changes
Drivers with low customer ratings were sometimes permanently suspended. Uber said it no longer makes permanent deactivation decisions solely through automated systems.
(Reporting by Toby Sterling; Editing by Kirsten Donovan)
