Uber is facing an €825 million (approximately $964 million) fine from the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, AP) for its use of fully automated systems to suspend or deactivate driver accounts without human review. The AP ruled that Uber violated the General Data Protection Regulation (GDPR) by making significant decisions affecting individuals' livelihoods solely through algorithms, and by failing to adequately inform drivers about these automated processes.
The fine specifically addresses Uber's practices between 2018 and 2022. During this period, Uber's software monitored driver behavior and customer reviews. If the system detected suspected fraud or consistently low customer ratings, driver accounts were automatically deactivated, either temporarily or permanently, leading to a loss of income. The AP emphasized that these decisions were made without any human assessment or oversight.
Under GDPR, fully automated decisions that can significantly impact a person's life are restricted, particularly if they remove an individual's ability to earn a living without human intervention. The regulation also mandates that companies disclose when automated systems are used to make such decisions. The AP found Uber deficient on both counts.
Uber has stated its intention to appeal the decision and the size of the fine. The company claims that the regulator's examination focused on outdated policies and systems that have since been discontinued. Uber also asserts that it takes decisions affecting driver income seriously and has implemented human reviews, safeguards, and an appeals process for drivers. The appeal is expected to clarify whether these protections were in place during the period covered by the fine or were introduced later.
This is not the first time Uber has faced penalties from Dutch regulators. It marks the fourth fine imposed by the AP on Uber. A previous significant fine of €290 million in 2024 concerned the transfer of European drivers' personal data to the United States without adequate protections, a decision Uber also appealed.
The case highlights a broader issue within the gig economy, where many platforms rely on algorithms for managing workers, routes, and account statuses. The ruling underscores the potential costs for companies that depend on automated decisions without sufficient human oversight, signaling that simply attributing decisions to "the algorithm" is no longer acceptable under EU law when individuals' livelihoods are at stake.
