Dutch regulator fines Uber $966 million over automated driver suspensions

The Dutch Data Protection Authority fined Uber €825 million ($966 million) for suspending and deactivating driver accounts through automated systems without adequately informing them, according to a decision reviewed by Reuters.

The penalty is the second-largest issued under Europe’s General Data Protection Regulation, behind a €1.2 billion fine imposed on Meta in Ireland in 2023. Uber said it disputes the decision and the size of the fine and will appeal.

The regulator said Uber committed serious violations by deactivating accounts without warning or human involvement. GDPR rules restrict decisions made solely by algorithms when they significantly affect people’s lives and require meaningful human review and a way to challenge the decision.

The case covered incidents in Europe from 2018 to 2022 and was handled by the Dutch regulator because Uber’s European headquarters are in the Netherlands. The systems flagged suspected fraud, including unnecessary detours and trips accepted without an intention to complete them.

Uber said suspensions were usually brief and that it did not automate permanent deactivations. The regulator said some drivers with low customer ratings were permanently deactivated by computer. Uber said 126 European drivers were affected by such decisions in 2021.