The Netherlands’ data protection authority has fined Uber nearly 825 million euros (about $962 million) for making fully automated decisions to deactivate drivers’ accounts, in a case tied to the European Union’s data protection law.
Uber tracked driving behavior and customer reviews solely through software without any human assessment, the Dutch regulator, Autoriteit Persoonsgegevens (AP), said in an Aug. 21 statement.
When the software suspected fraud or detected low customer reviews, the drivers’ accounts were automatically deactivated on a temporary basis. In cases of persistently low customer reviews, the accounts were permanently deactivated.
These actions, which took place between 2018 and 2022, caused many Uber drivers to lose their incomes, according to the regulator.
Monique Verdier, deputy chair of the regulatory body, accused Uber of committing “serious infringements.”
“Drivers were deactivated without pardon. From one moment to the next, they no longer had any income through Uber. That’s forbidden. A computer should not make decisions on its own that have major consequences for you. These decisions should have been looked at first by a human being,” Verdier said.
The regulator started the investigation after 171 French drivers complained to a French human rights organization, which then filed a complaint with France’s privacy regulator. The AP researched the issue because Uber’s European headquarters is located in the Netherlands.
According to the regulator, Uber violated the General Data Protection Regulation’s ban on fully automated decision-making. The regulation is the European Union’s data privacy and security law. The company also did not “sufficiently inform” the drivers about its automatic decision-making process, the regulator said, adding that Uber has now stopped these violations.
The company disagreed with the decision and the fine in a written statement.
“The [Data Protection Authority] examined historic policies that were discontinued years ago. We take decisions that affect drivers’ ability to earn extremely seriously and we’re fully committed to fair treatment,” Uber said.
“This includes human reviews, robust safeguards, and the opportunity for drivers to appeal our decisions if they believe we made a mistake.”
In its statement, the AP said Uber has filed an appeal against the fine, which was calculated based on the company’s annual global turnover of 44.5 billion euros (about $52 billion) last year. Up to 4 percent of turnover can be fined.
The AP has previously imposed fines against Uber three times—600,000 euros (about $700,000) in 2018, 10 million euros (about $11.6 million) in 2023, and 290 million euros (about $338 million) in 2024. Uber is still defending against the fines imposed in 2023 and 2024, the regulator said.
The Epoch Times reached out to Uber for comment but did not receive a response by publication time.
Issues related to Uber’s driver dismissal policies have also gone to court in the United States. Last month, a district judge sided with Uber and Lyft in a
that sought to halt a law in New York City that would have required the companies to offer at least two weeks’ notice and “just cause” before drivers’ accounts were deactivated.
Judge Gregory Woods of the U.S. District Court for the Southern District of New York issued a preliminary injunction against the law ahead of the regulation’s July 28 effective date.
Woods called the law unconstitutional, saying that it benefits only a small fraction of drivers while interfering with companies’ right to ensure safety on their platforms.
According to Uber’s U.S. webpage, the company uses manual reviews to ensure that drivers’ accounts are not affected by fraudulent reports filed by customers.
“Whenever possible, we’ll inform a driver or delivery person if they’re at risk of losing access to their account or specific learning opportunities,” the company said.
“However, there are times when we may need to remove access without advance notice, such as for legal or safety reasons.”
In most cases, drivers can request a review of the decisions that led to their account access being blocked, Uber said. The most common reasons drivers lose account access include expired documents and failing the company’s Real-Time ID Check.
The Associated Press contributed to this report.
