Dutch privacy regulator fines Uber €825 million ($966 million) over automated driver suspensions
- Marijan Hassan - Tech Journalist
- 6 hours ago
- 2 min read
The Dutch Data Protection Authority (Autoriteit Persoonsgegevens) has hit Uber Technologies Inc. with an €825 million ($966 million) fine for deactivating driver accounts using fully automated systems without human oversight. The decision marks the second-largest penalty ever issued under Europe's General Data Protection Regulation (GDPR), trailing only the €1.2 billion fine levied against Meta in 2023.
GDPR Violations and Algorithmic Lockouts
The regulator's ruling follows an investigation sparked by French driver union complaints regarding account suspensions between 2020 and 2022. Because Uber maintains its European headquarters in Amsterdam, the Dutch watchdog served as the lead privacy regulator for the inquiry across the European Union.
Under Article 22 of the GDPR, individuals have a legal right not to be subjected to decisions based solely on automated processing, including profiling, if those decisions produce legal effects or significantly affect their livelihood.
The Dutch regulator determined that Uber breached these protections by:
Automated Fraud Off-boarding: Using algorithmic flags to instantly suspend drivers suspected of fraudulent activity, such as taking unnecessary detours to inflate fares or accepting trips without completing them.
Lack of Human Oversight: Deactivating accounts without meaningful manual review by human managers to verify software flagging errors.
Opaque Transparency: Failing to properly inform drivers about the underlying logic behind automated suspensions or providing adequate channels to contest deactivations.
"From one moment to the next, drivers lost their source of income without a human ever reviewing the decision," stated Monique Verdier, Deputy Chair of the Dutch Data Protection Authority. "A computer should not make decisions on its own that carry such severe consequences for someone's life."
Uber Vows to Appeal 'Disproportionate' Penalty
Uber strongly rejected the regulator's findings and confirmed plans to appeal the fine through Dutch courts. In a public statement, an Uber spokesperson called the penalty "unjustified and completely disproportionate," arguing that the agency evaluated historical operational policies that it has since phased out.
Uber maintained that its current dispute resolution process incorporates human evaluation and clear appeal channels for driver account status reviews.
The €825 million sanction represents the fourth and largest penalty levied by the Dutch watchdog against Uber, following a €290 million fine in 2024 over transatlantic driver data transfers. The case establishes a strict legal precedent across the EU regarding gig-economy platforms using algorithmic automation for workforce management and account terminations.
