Dutch regulator fines Uber $966 million for automating driver suspensions

The Dutch Data Protection Authority has imposed a hefty fine of €825 million ($966 million) on Uber, citing serious infringements linked to automated driver account suspensions without proper human oversight. This hefty penalty represents the second-largest fine under Europe's General Data Protection Regulation (GDPR), only surpassed by a €1.2 billion fine imposed on Meta in 2023 for unlawful data transfers to the United States. Meta, however, is currently appealing the decision.

According to the Dutch authority, Uber's automated suspension system raised significant concerns, as it deactivated driver accounts without providing adequate warnings or human intervention, depriving drivers of their income abruptly. The regulator argued that decisions solely made by algorithms affecting people's lives necessitate human review and an avenue for challenge.

Indeed, Uber's automated suspensions, primarily in 2018 to 2022, were triggered by suspicions of fraud, including unnecessary detours to inflate fares or accepting trips without completion. While Uber acknowledged that most suspensions were temporary and drivers had opportunities to dispute them, the company vehemently disagreed with the fine, asserting it was disproportionate due to the limited number of drivers affected—just 126 in 2021 due to low customer ratings.

The Dutch regulator affirmed the penalty on Friday. Uber vowed to appeal the decision, emphasizing its commitment to protecting drivers' rights and its policies, which include human reviews and avenues for disputing suspensions. The fine was calculated as a fraction of Uber's anticipated 2025 annual earnings. The Dutch Data Protection Authority emphasized that the penalty reflects the severity of Uber's actions and the need for robust human oversight in automated decision-making processes.