Uber’s handling of driver accounts has resulted in an €825 million fine from the Dutch Data Protection Authority. The fine, equivalent to approximately $1 billion, was imposed because the company violated European Union data protection rules.
According to the authority’s decision, Uber deactivated some accounts through automated systems but did not provide drivers with sufficient information about these actions. People whose accounts were closed were also not given adequate opportunities to challenge the decisions.
Complaints from drivers in France examined
The investigation began after complaints from drivers in France about practices between 2020 and 2022. Uber temporarily suspended the accounts of some drivers suspected of fraud. These included drivers accused of making unnecessary route changes to increase their earnings.
The case was examined in the Netherlands because Uber’s European headquarters are located in Amsterdam.
EU rules require human oversight
European Union data protection rules do not allow decisions that significantly affect people’s lives to be made solely by algorithms. The rules require human oversight in such processes and allow people affected by a decision to challenge it.
Uber said it fundamentally disagreed with the decision and considered the fine disproportionate. The company said people are now also involved in such decisions and that drivers can challenge the deactivation of their accounts.