Uber fined nearly $1B in Netherlands over automated driver account suspensions

The Dutch Data Protection Authority has imposed an €825 million (roughly $966 million) fine on Uber, which Reuters reports is the second-largest penalty issued so far under Europe's General Data Protection Regulation. The regulator investigated complaints that Uber deactivated driver accounts through an automated process without sufficient warning or human oversight.

Deputy chair Monique Verdier said in a statement that the company had committed serious infringements, arguing that a computer should not make decisions on its own that carry such major consequences. Dutch regulators said some drivers were permanently deactivated without any human review, a claim Uber disputes.

Uber argued that most driver suspensions are brief, that no permanent deactivation happens without human review, and that drivers can appeal decisions. The company said it strongly disagrees with the decision and the fine, which it called disproportionate, and confirmed it will appeal.

Origins of the complaint

The case traces back to Brahim Ben Ali, a former Uber driver in France whose account was deactivated in 2019. He subsequently gathered testimonies from 171 other Uber drivers and brought the complaint to the Netherlands, home to Uber's European headquarters. He was supported by PersonalData.io, a Swiss digital-rights nonprofit that helped drivers collect data on how deactivation decisions were made.

PersonalData.io founder Paul-Olivier Dehaye said a driver could complete a thousand trips with satisfied passengers, yet a single serious complaint could still lead to major consequences. He noted this marks the third fine the Dutch regulator has levied against Uber, following a €290 million fine over handling of drivers' personal data and a €10 million fine over related issues. Dehaye said all these fines stem from complaints originally filed by the same group of drivers, and that he plans to launch a class action allowing drivers to seek compensation. He is also starting a new company, StartClaims, to support litigation and regulatory action, initially targeting Uber before expanding to other gig-economy cases and related fields such as adtech.