The Dutch Data Protection Authority has imposed a fine of €825 million, nearly $1 billion, on Uber for allegedly violating European data protection regulations in the way it handled drivers and suspended their accounts.
According to the regulator, Uber relied on automated systems to deactivate drivers’ accounts without properly notifying them or providing sufficient opportunities to appeal or challenge the decisions.
The case concerns incidents that occurred between 2020 and 2022 and began after drivers in France filed complaints. Uber had temporarily suspended drivers suspected of fraudulent behavior, including some accused of deliberately taking longer routes to increase their earnings.
The case was dealt with by Dutch authorities because Uber’s European headquarters are located in Amsterdam.
European data protection regulations restrict companies from allowing automated algorithms to make decisions that have a significant effect on individuals without appropriate human involvement. People affected by such decisions must also have a meaningful opportunity to challenge them.
The Dutch regulator concluded that Uber’s procedures did not meet these requirements.
Uber strongly rejected the findings, saying it fundamentally disagreed with the decision and considered the financial penalty excessive.
The company said its current procedures involve human review when accounts are deactivated and that drivers now have the ability to challenge such decisions.
NEWS DESK
PRESS UPDATE