Uber hit with €825 million GDPR fine over automated driver suspensions

The Dutch Data Protection Authority has fined Uber €825 million, approximately $966 million, for using an automated process to deactivate driver accounts without sufficient warning or human oversight. This penalty marks the second-largest issued under Europe’s General Data Protection Regulation (GDPR) and represents a significant regulatory cost for the ride-hailing giant.

Deputy Chair Monique Verdier stated that Uber had “committed serious infringements,” emphasising that a computer should not make decisions on its own that have major consequences. The regulator’s findings suggest that the automated system operated with insufficient checks, leading to account deactivations that affected drivers across the region.

Uber has contested the decision, arguing that most suspensions are brief and that no permanent deactivations occur without human review. The company maintains that drivers have the ability to appeal these decisions and has described the fine as disproportionate. Uber has confirmed it plans to appeal the ruling, with a spokesperson stating that the company strongly disagrees with the outcome.

The case originated from complaints by a group of drivers, including former French driver Brahim Ben Ali, who was assisted by the Swiss nonprofit PersonalData.io. Ben Ali, whose account was deactivated in 2019, collected testimonies from 170 other drivers before bringing the complaint to the Netherlands, where Uber’s European headquarters are located. PersonalData.io helped the drivers gather data on how the deactivation decisions were made.

Paul-Olivier Dehaye, founder of PersonalData.io, noted that this is the third fine levied on Uber by the Dutch regulator, following previous penalties of €290 million and €10 million. Dehaye plans to launch a class action suit and a new company called StartClaims to support litigation against Uber and potentially other gig economy and adtech companies. He argued that Uber must take responsibility for its decision-making processes, similar to a traditional employer.

The fine has also drawn criticism from commentators such as John Gruber of Daring Fireball, who argued that the penalty may make it unlawful for Uber to monitor drivers for scams or non-pickups. Gruber contended that the regulator’s focus on “computers” ignores the fact that managers set the policies, a point Dehaye countered by stating that Uber must accept the consequences of its automated systems.