Uber hit with $966 million fine over automated driver suspensions
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 […]…
The Dutch Data Protection Authority has imposed a €825 million ($966 million) fine on Uber Technologies Inc. for using automated systems to suspend and deactivate driver accounts without proper notification or safeguards. This penalty, the second largest under the EU's GDPR, covers practices between 2020 and 2022 and stems from complaints originating in France.
The regulator found that Uber's temporary fraud waitlisting system and ratings-based deactivations violated drivers' rights by relying on automated processing that could significantly impact their ability to work. Uber strongly disagreed with the decision, stating it was disproportionate and would appeal. The company acknowledged that the practices had been discontinued years ago.
This case highlights increasing regulatory scrutiny of algorithms and AI in employment and platform-based businesses, particularly when automated systems determine an individual's ability to earn income. Under GDPR, individuals have protections against decisions based solely on automated processing that produce legal or significant effects, requiring human intervention and the ability to challenge such decisions.
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