Uber Technologies Inc. has been fined €825 million ($966 million) by the Dutch Data Protection Authority for using automated systems to suspend and deactivate drivers’ accounts without adequately informing them or providing sufficient safeguards around automated decision-making.
The penalty, which covers practices between 2020 and 2022, is the second largest fine imposed under the European Union’s General Data Protection Regulation (GDPR), according to the Dutch regulator.
Reuters reported that the decision was issued on August 17 and relates to complaints originating from France, with the Netherlands handling the case because Uber’s European headquarters is located there.
What they are saying
The Dutch regulator said it found that Uber’s temporary fraud waitlisting system and ratings based deactivations breached drivers’ rights by relying on automated processing that could have significant consequences for their ability to work.
However, Uber said it strongly disagreed with the decision and considered the fine disproportionate, adding that it would appeal.
- “We strongly disagree with this decision and the 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.
The company said the practices covered by the ruling had been discontinued years ago. According to an Uber spokesperson, the temporary fraud waitlisting process ended in 2021, while ratings-based deactivations were discontinued in 2022.
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The case indicated growing regulatory scrutiny of the use of algorithms and artificial intelligence in employment and platform-based businesses, particularly where automated systems can determine whether an individual can…
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