Dutch data regulator fines Uber nearly $1B over driver treatment, account suspensions

Uber has been fined €825 million (nearly $1 billion) by the Dutch Data Protection Authority for violating European data protection rules in its treatment of drivers.

The regulator said the ride-hailing company used automated systems to deactivate drivers’ accounts without properly informing them or giving them adequate opportunities to challenge the decisions, according to a report by NOS.

The case relates to events between 2020 and 2022 and began with complaints from drivers in France. Uber temporarily suspended drivers suspected of fraud, including those accused of taking unnecessary detours to increase their earnings.

The case was handled in the Netherlands because Uber’s European headquarters are in Amsterdam.

EU rules prohibit algorithms from making decisions on their own when those decisions have a significant impact on people’s lives. Such decisions must involve human oversight, and affected individuals must be able to challenge them.

Uber said it “fundamentally disagree[s] with this decision” and considers the fine “disproportionate.”

The company also said people are now involved in such decisions and that drivers can challenge account deactivations.