The penalty, which relates to practices between 2020 and 2022, is the second-largest fine imposed under the European Union’s General Data Protection Regulation (GDPR), according to the Dutch regulator.
What they are saying
The Dutch Data Protection Authority said Uber failed to provide drivers with adequate information about how automated decision-making was used when their accounts were suspended or deactivated.
The regulator said the company also did not provide sufficient safeguards to ensure drivers could properly challenge decisions made through automated systems.
The case followed complaints from drivers in France. However, the Netherlands handled the investigation because Uber’s European headquarters is located in the country.
Reuters reported that the decision was issued on August 17, with the regulator finding that Uber’s practices breached provisions of the GDPR governing automated decision-making and the rights of individuals affected by such decisions.
What you should know
The €825 million ($966 million) penalty ranks among the largest GDPR fines ever imposed in Europe and represents a significant regulatory setback for Uber.
The case centres on Uber’s use of automated systems in managing driver accounts, particularly decisions involving suspensions and deactivations.
Under the GDPR, individuals have rights concerning decisions based solely on automated processing when those decisions have significant effects on them. Companies are also required to provide appropriate information and safeguards around such processes.
The fine covers Uber’s practices between 2020 and 2022 and does not necessarily represent a penalty for the company’s current systems or practices.
The decision also highlights the growing regulatory scrutiny facing technology companies over the use of artificial intelligence and automated decision-making in employment and platform-based work.
For Uber, the penalty could have wider implications for how it manages driver accounts across its European operations, particularly where automated systems are involved in decisions that can directly affect drivers’ ability to earn income.
