Uber Fined €825 Million Over Automated Driver Suspensions

The Dutch Data Protection Authority has imposed a record-breaking fine of €825 million (approximately $966 million) on Uber, marking the second-largest penalty issued under Europe’s General Data Protection Regulation. The fine stems from the company’s automated process for deactivating driver accounts without sufficient warning or human oversight.

According to the Dutch regulator, Uber had committed ‘serious infringements’ by deactivating driver accounts through a computer-driven process. Deputy Chair Monique Verdier emphasized that ‘a computer should not make decisions on its own that have such major consequences.’

However, Uber disputed the claims, arguing that most driver suspensions are brief, and that no permanent deactivations take place without human review. The company also stated that drivers have the ability to appeal. Despite this, the Dutch regulator maintained that some drivers were permanently deactivated without human review, which Uber disputes.

A former Uber driver, Brahim Ben Ali, played a crucial role in bringing this issue to light. In 2019, his account was deactivated, prompting him to collect testimonies from 170 other Uber drivers. Ben Ali eventually brought his complaint to the Netherlands, where Uber’s European headquarters are located. He was assisted by a Swiss nonprofit focused on digital rights called PersonalData.io, which helped the drivers collect data about how the deactivation decisions were made.

Founder Paul-Olivier Dehaye highlighted the significant consequences of Uber’s automated process, stating that a driver ‘can complete a thousand journeys with satisfied passengers, but if just one person reports a very serious problem, the consequences can be enormous.’

Dehaye also revealed that this is the third fine levied on Uber by the Dutch regulator, following a €290 million fine over its handling of drivers’ personal data and a €10 million fine stemming from related issues. Furthermore, he plans to start a class action suit through which drivers can seek compensation.

Dehaye also announced the launch of a new company called StartClaims, which will support litigation and other regulatory action, initially targeting Uber and eventually expanding to other gig economy cases and related areas.

In response to the fine, Uber stated that it ‘strongly disagrees with this decision and disproportionate fine.’ The company has vowed to appeal the decision.

A notable voice in the debate is Daring Fireball’s John Gruber, who expressed concern that this fine makes it ‘unlawful in the EU for Uber to monitor its drivers for pulling scams against customers, or just never picking riders up, leaving them stranded.’

However, Dehaye countered that Gruber ‘misses the point,’ emphasizing that Uber is free to use humans to punish drivers who scam, but then ‘has to take responsibility for this decision-making (like being an employer, not being a marketplace).’

As the debate surrounding Uber’s automated driver suspensions continues, the Dutch regulator’s fine serves as a stark reminder of the importance of transparency and accountability in the gig economy.