Uber Faces Nearly $1 Billion Fine Over Automated Driver Suspensions

Uber is facing a €825 million, or roughly $966 million, fine in the Netherlands over claims that automated systems suspended or deactivated drivers without sufficient warning or human oversight.

The irony is difficult to miss. Uber says permanent deactivations do not happen without human review, while the Dutch regulator says some drivers were permanently removed without it. Now, the dispute is headed for an appeal.
 

TL;DR

 

• The Dutch Data Protection Authority fined Uber €825 million over automated driver deactivations.
• Regulators said some drivers faced major account decisions without adequate human oversight.
• Uber disputes the findings and plans to appeal the penalty.
• The case grew from driver complaints and could now lead to a class action seeking compensation.

 

Dutch Regulator Says Uber Driver Deactivations Lacked Human Oversight

The Dutch Data Protection Authority investigated complaints alleging that Uber deactivated driver accounts through automated processes without sufficient warning or meaningful human involvement.

The €825 million penalty is around $966 million and, according to Reuters, represents the second-largest fine issued under Europe’s General Data Protection Regulation.

Deputy chair Monique Verdier said Uber had “committed serious infringements.”

“A computer should not make decisions on its own that have [such] major consequences,” Verdier said.

The complaints stretch back years. Former Uber driver Brahim Ben Ali said his account was deactivated in 2019, after which he gathered testimonies from 170 other drivers before bringing the issue to the Netherlands, where Uber’s European headquarters are located.
 

 

Uber Disputes Automated Deactivation Claims And Plans To Appeal

Uber strongly contests the regulator’s conclusions.

The company said most driver suspensions are brief, permanent deactivations do not occur without human review, and drivers can appeal decisions. Dutch regulators maintain that some drivers were permanently deactivated without human review, a finding Uber disputes.

“We strongly disagree with this decision ​and disproportionate fine,” an Uber spokesperson said.

That disagreement places the role of automated decision-making at the center of the case, particularly when platform decisions can directly affect a driver’s ability to earn income.
 

 

Uber Driver Complaints Could Now Lead To A Class Action

Swiss digital rights nonprofit PersonalData.io helped the drivers gather information about how Uber’s deactivation decisions were made.

Its founder, Paul-Olivier Dehaye, said a driver “can complete a thousand journeys with satisfied passengers, but if just one person reports a very serious problem, the consequences can be enormous.”

Dehaye said this is the third fine imposed on Uber by the Dutch regulator, following penalties of €290 million related to drivers’ personal data and €10 million over related privacy issues. He said all three stem from complaints made by the same group of drivers.

He now plans to pursue a class action through which drivers could seek compensation and is launching StartClaims to support litigation and regulatory action, initially against Uber before potentially expanding into other gig economy and adtech cases.

Responding to criticism that the ruling could restrict Uber from policing fraudulent or problematic driver behavior, Dehaye said Uber remains free to use humans to punish drivers who scam.

The bigger issue, he argued, is who takes responsibility when automated systems make decisions carrying serious consequences for workers.