Uber is no stranger to hefty fines, but its latest regulatory battle could be much more expensive. The ride-hailing company is once again facing scrutiny in Europe, this time over how its algorithms make decisions that can affect drivers’ livelihoods.
According to the Dutch Data Protection Authority, it’s preparing to impose a fine of almost €825 million (about $1 billion) on Uber, which would make it one of the largest penalties ever issued under Europe’s General Data Protection Regulation (GDPR), as well as the biggest fine Uber has faced.
Why Uber is facing the fine
“A computer should not make decisions on its own that have such major consequences,” said Monique Verdier, the authority’s deputy chair, explaining the regulator’s position.
The regulator found that some Uber drivers were permanently deactivated without meaningful human review, potentially violating GDPR rules governing decisions made solely through automated processing when they have significant consequences for individuals.
Uber disputes the findings. The company says most suspensions are temporary, that permanent deactivations are subject to human review, and that drivers have the right to appeal.
Uber has called the fine “disproportionate” and said it plans to appeal. The company also argues that the policies under investigation are “historic policies that were discontinued years ago.”
Ogbonda Chivumnovu
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