Dutch Regulator Fines Uber $966 Million Over Automated Driver Suspensions.
✧ GENERATE BRIEFING +
The Dutch Data Protection Authority (AP) has levied an € 825 million ($966 million) fine against Uber for utilizing automated systems to suspend and deactivate driver accounts without adequate transparency or meaningful human oversight. Marking the second-largest penalty in history under the European Union's General Data Protection Regulation (GDPR) behind Meta's € 1.2 billion fine in 2023 the decision targets Uber’s algorithmic fraud-detection practices applied across Europe between 2020 and 2022. Operating from Uber's European headquarters in the Netherlands, the regulator concluded that automated deactivations over suspected fare manipulations severely impacted drivers' livelihoods without offering structured recourse or explicit disclosures mandated by Article 22 of the GDPR. Uber strongly rejected the ruling, asserting that its platform policies include manual human reviews and formal appeal pathways, and confirmed plans to appeal the decision in court.
The Dutch Data Protection Authority (AP) has fined Uber €825 million ($966 million) for using automated systems to suspend or deactivate drivers’ accounts without adequately informing affected drivers, according to a regulatory decision reviewed by Reuters.
The penalty is the second-largest fine ever imposed under the European Union’s General Data Protection Regulation (GDPR), after the €1.2 billion penalty imposed on Meta in 2023.
The Dutch regulator found that Uber violated drivers’ rights by relying on automated decision-making that could have significant consequences for their livelihoods. Under GDPR rules, such decisions require meaningful human oversight and an opportunity for affected individuals to challenge them.
The case relates to incidents involving Uber drivers in Europe between 2020 and 2022. The investigation originated from a complaint filed in France and was handled by the Dutch regulator because Uber’s European headquarters are located in the Netherlands.
Uber used automated systems to identify drivers suspected of fraudulent activity. These included cases where algorithms determined that drivers had taken unnecessary detours to increase fares or accepted trips without intending to complete them.
Uber said it strongly disagrees with the decision and considers the fine disproportionate. The company said its current policies include human reviews and procedures allowing drivers to challenge suspensions, and it plans to appeal the decision.
The Dutch regulator also found that Uber failed to properly inform drivers about the automated decision-making processes used against them.
The case highlights growing regulatory scrutiny of companies using algorithms to make decisions that can significantly affect workers’ employment and income, particularly as automated systems become more widely used across digital platforms.
