Netherlands fines Uber with close to billion-dollar penalty

The Dutch Data Protection Authority has fined global ride-hailing company Uber €825 million for deactivating drivers’ accounts through automated systems without adequately informing them.

The decision was reached originally on August 17 and, if upheld, would be the second-largest fine ever imposed under the European Union’s General Data Protection Regulation (GDPR), as Reuters reports.

It is surpassed only by a €1.2 billion fine imposed on Meta by Ireland in 2023 over the unlawful transfer of European Facebook users’ data to the United States, with Meta appealing that penalty.

The Dutch authority confirmed the Uber decision on August 21, with Uber also announcing that it would appeal. The company claims it takes drivers’ rights seriously and argued that its policies include human reviews and provide drivers with opportunities to challenge account suspensions. Uber also described the fine as "disproportionate."

"Uber has committed serious infringements," by deactivating driver accounts without warning or human involvement, the Dutch authority’s deputy chair, Monique Verdier, said in a statement.

"From one moment to the next they no longer had any income ... A computer should not make decisions on its own that have (such) major consequences."

The case concerns incidents involving European Uber drivers between 2018 and 2022 and initially stemmed from a complaint filed in France. It was handled by the Dutch regulator because Uber’s European headquarters are located in the Netherlands.

The authority’s decision focuses on the use of automated processes to deactivate drivers’ accounts and the information provided to affected drivers about how those decisions were made and how they could challenge them.

Growing pressure by Europe on Big Tech

The huge Dutch penalty forms part of a broader series of fines imposed by European regulators on major technology companies in recent years under privacy, competition and digital-market rules.

Technology giants including Meta, Google, Apple and Amazon have all faced multiple regulatory penalties across Europe.

However, headline fines are often reduced or overturned after lengthy appeals and legal proceedings.

US President Donald Trump has repeatedly criticised European penalties against American technology companies. In April, a US State Department official described such fines as the "biggest single source of friction" in US-EU economic relations.

Uber’s appeal means the final amount and legal consequences of the Dutch decision could still change.

By Nazrin Sadigova