Uber faces fine of nearly $1B over automated driver suspensions

Summarized from techcrunch.com


The Dutch Data Protection Authority has imposed a fine of €825 million (approximately $966 million) on Uber, marking the second-largest penalty under Europe’s General Data Protection Regulation (GDPR), as reported by Reuters. The fine stems from an investigation into complaints that Uber deactivated driver accounts through an automated process without adequate warning or human oversight. Deputy chair Monique Verdier stated that Uber had “committed serious infringements,” emphasizing that “A computer should not make decisions on its own that have [such] major consequences.”

Uber contests the findings, arguing that most driver suspensions are temporary, no permanent deactivations occur without human review, and drivers have the right to appeal. The company plans to appeal the decision, with a spokesperson expressing strong disagreement with both the decision and the fine’s magnitude. The case was initiated by a former Uber driver, Brahim Ben Ali, who, with the assistance of the Swiss nonprofit PersonalData.io, gathered testimonies from 170 drivers and brought the complaint to the Netherlands, where Uber’s European headquarters are located. PersonalData.io founder Paul-Olivier Dehaye highlighted that this fine is the third levied on Uber by the Dutch regulator, following previous fines of €290 million and €10 million related to data handling and related issues. Dehaye also announced plans to initiate a class action suit through a new company, StartClaims, to support litigation and regulatory action against Uber and potentially other gig economy entities. Source