Uber faces fine of nearly $1B over automated driver suspensions

The Dutch Data Protection Authority has imposed a substantial fine of €825 million, roughly $966 million, on Uber for automating driver suspensions without proper human oversight. This is the second largest penalty under Europe’s General Data Protection Regulation. According to the regulator, Uber violated the rules by making decisions that had significant consequences without proper human intervention.

Deputy chair Monique Verdier stated that the company committed serious infringements, emphasizing that a computer should not be allowed to make such critical decisions. However, Uber contends that most driver suspensions are short-term, no permanent deactivations happen without human review, and drivers have the right to appeal.

Some drivers were permanently deactivated without human review, a claim Uber disputes. The company intends to appeal the decision. Uber's spokesperson expressed disagreement with the fine, calling it disproportionate. The matter has personal significance for Brahim Ben Ali, a former Uber driver in France, who, with assistance from a Swiss nonprofit, gathered testimonies from 171 other drivers to bring the complaint to the Netherlands, Uber's European headquarters.

Ben Ali emphasized that a single complaint can lead to severe consequences for a driver. Paul-Olivier Dehaye, founder of a class action lawsuit, explained that these fines are a result of complaints from a group of drivers. He plans to start a new company, StartClaims, to support litigation and regulatory action against Uber and other gig economy cases.

The case has raised concerns about the fairness of automated driver suspensions and the responsibilities of tech companies in such scenarios.