Ride-hailing giant Uber has been fined €825 million (around ₹9,226 crore) by the Dutch Data Protection Authority for allegedly using automated systems to suspend driver accounts without adequate human intervention.
The regulator said Uber committed “serious infringements” by allowing automated systems to deactivate drivers suspected of fraud or those receiving low customer ratings. The violations relate to practices used between 2018 and 2022.
According to the Dutch authority, affected drivers were not adequately informed about the automated decision-making process and did not receive sufficient human review to correct potential errors. Such practices can have a major impact on drivers because account deactivation can directly affect their ability to earn a livelihood.
Uber Plans to Appeal
Uber has strongly disagreed with the decision and described the fine as disproportionate. The company said it plans to appeal the ruling.
Uber also maintained that its current policies include human reviews and opportunities for drivers to challenge account suspensions, arguing that the Dutch regulator's decision concerns historical practices that were discontinued years ago.
Major GDPR Penalty
The €825 million penalty is among the largest fines imposed under the European Union's General Data Protection Regulation (GDPR) and would rank as the second-largest GDPR fine to date, behind the €1.2 billion penalty imposed on Meta in 2023.
The case highlights growing regulatory scrutiny of technology companies over the use of algorithms and automated decision-making, particularly when such systems can significantly affect people's jobs and livelihoods.
