Netherlands Fines Uber €825 Million for Algorithmic Driver Suspensions

The Netherlands' Data Protection Authority (AP) has imposed a €825 million ($966 million) fine on Uber for suspending and deactivating driver accounts via automated systems without sufficient human review or prior notification. This penalty is the second-largest issued under the EU's General Data Protection Regulation (GDPR).

The violations, which occurred between 2018 and 2022, involved two main systems: a fraud detection tool and a rating-based system that could lead to permanent account termination. The AP determined that Uber violated drivers' rights by subjecting them to automated decision-making with significant consequences and failing to provide adequate information.

Uber has stated that it ended the fraud-related suspension process in 2021 and rating-based deactivations in 2022. The company has also indicated it "strongly disagrees" with the decision and the fine's size, announcing plans to appeal.

The substantial fine underscores the strict enforcement of GDPR's provisions regarding automated decision-making, particularly for gig economy platforms. This action follows previous fines issued by the AP against Uber for data breaches and data transfer issues.