Dutch Regulator Fines Uber €825 Million Over Automated Driver Suspensions
The Dutch Data Protection Authority has fined Uber €825 million (approximately $966 million) following an investigation into automated driver account deactivations. The penalty represents the second largest fine issued to date under Europe’s General Data Protection Regulation (GDPR).
The Dutch regulator launched its investigation after receiving complaints that Uber had deactivated driver accounts through automated processes without providing sufficient warning or human oversight. Monique Verdier, the deputy chair of the Dutch Data Protection Authority, stated that the ride-hailing company had "committed serious infringements."
"A computer should not make decisions on its own that have [such] major consequences," Verdier said in a statement regarding the decision.
Uber Disputes Findings and Plans Appeal
Uber has strongly rejected the regulator's findings and announced its intention to appeal the decision. The company argues that the vast majority of driver suspensions are brief, that no permanent deactivations occur without human review, and that drivers retain the ability to appeal suspension decisions.
While Dutch regulators asserted that some drivers were permanently deactivated without human review, Uber disputes this claim. "We strongly disagree with this decision and disproportionate fine," an Uber spokesperson said.
The case originated from complaints initiated by Brahim Ben Ali, a former Uber driver in France. After his account was deactivated in 2019, Ben Ali collected testimonies from 170 other Uber drivers. He eventually brought the complaint to the Netherlands, where Uber’s European headquarters are located.
Support From Digital Rights Advocates
Ben Ali was assisted in his efforts by PersonalData.io, a Swiss non-profit organization focused on digital rights. The group helped drivers collect data regarding how the deactivation decisions were made.
Paul-Olivier Dehaye, the founder of PersonalData.io, highlighted the vulnerability of gig workers to automated systems. He noted that 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."
According to Dehaye, this is the third fine the Dutch regulator has levied against Uber. Previous penalties include a €290 million fine concerning the handling of drivers' personal data and a €10 million fine stemming from related issues. Dehaye stated that these fines all originated from complaints submitted by the same group of drivers.
Potential Class Action and Future Litigation
Dehaye revealed plans to launch a class action lawsuit to help affected drivers seek financial compensation. To support this litigation and other regulatory actions, he is starting a new company called StartClaims. The venture plans to focus initially on Uber before expanding to other gig economy cases and related sectors, such as adtech.
The regulatory action has also sparked debate regarding the boundaries of automated management. Critics, such as Daring Fireball’s John Gruber, have expressed concern that the ruling could make it unlawful for companies to monitor drivers for scams or failure to pick up passengers. Gruber argued that saying "a computer" made the decision is akin to blaming a time clock when a late employee is suspended, as human managers set the policies and devices merely measure compliance.
Dehaye countered this perspective, arguing that Uber remains free to use human staff to discipline drivers who commit fraud, but doing so requires the company to accept the responsibilities of being an employer rather than operating strictly as a marketplace.
