Drivers’ accounts suspended via AI; now Uber faces a ₹9,000 crore fine!
Uber has been fined approximately €825 million—over ₹9,000 crore—in Europe for the automated suspension and deactivation of drivers’ accounts. This action was taken by the Dutch Data Protection Authority (DPA). The regulator stated that Uber made decisions regarding drivers without adequate human oversight and failed to provide affected drivers with necessary information about the automated decision-making process.
The case concerns the systems Uber used to take action against drivers’ accounts. According to the regulator, the company’s systems automatically deactivated drivers’ accounts—either temporarily or, in some instances, permanently—due to issues such as suspected fraud or low customer ratings. This directly impacted the earnings drivers generated through the Uber platform.
According to Reuters, the case relates to events in Europe between 2018 and 2022. While the complaint was originally filed in France, the Dutch Data Protection Authority handled the investigation because Uber’s European headquarters is located in the Netherlands.
A crucial aspect of this case is the use of automated systems for significant decisions affecting drivers. European GDPR regulations place limits on decisions that could have a serious impact on an individual. In such cases, relying solely on computer-generated decisions is insufficient; adequate human oversight and an opportunity for the affected individual to challenge the decision are required.
The Dutch regulator stated that Uber’s systems lacked sufficient information for drivers and failed to provide effective human review. According to the regulator, some drivers were removed from the platform without adequate warning, directly affecting their income.
Reports indicate that Uber has expressed disagreement with this decision. The company states that most driver suspensions are temporary and short-term, and that a human review is conducted before any driver is permanently deactivated. The company also noted that drivers have the option to appeal the decision.
This fine of €824.99 million is one of the largest ever imposed under the GDPR. Reports indicate that it could be the second-largest GDPR fine; a larger fine of €1.2 billion was imposed on Meta in 2023.
