When the Algorithm Fires You: Uber Faces €825M Fine

Uber faces an €825M GDPR fine for automatically suspending drivers without human review, highlighting the risks of AI decisions affecting workers.

The Dutch Data Protection Authority handed Uber its largest privacy fine yet, and this one isn’t about data transfers or cookie consent. The regulator imposed an 825 million euro penalty, roughly $964 million, over Uber’s use of fully automated software to suspend driver accounts, sometimes permanently, with no human ever reviewing whether the system got it right.

The violation is clear under EU law. The GDPR limits fully automated decisions when they can significantly affect a person’s life. An algorithm that can take away someone’s ability to earn a living, without any human review, falls directly into this category. The regulator also found that Uber failed to properly tell drivers when automated systems made these decisions, which the GDPR requires companies to disclose.

“The Autoriteit Persoonsgegevens (AP), the Dutch data protection authority, imposes a fine of 824,990,000 euros on Uber. The reason for this is that the AP has ruled that Uber made fully automated decisions about drivers. In case of suspicions of fraud or customer reviews that were too low, drivers’ accounts were automatically temporarily deactivated or, in case of persistent low customer reviews, permanently deactivated. As a result, their income was lost via Uber during the deactivation.” reads the statement published by the Dutch data protection authority. “According to the AP, Uber has violated the prohibition of fully automated decision-making under the General Data Protection Regulation (GDPR). The AP also found that Uber did not sufficiently inform drivers about automatic decision-making. Uber has now stopped the violations.”

The fine covers Uber’s practices from 2018 to 2022, so it concerns systems the company has already discontinued. Uber highlighted this point in its response, arguing that the regulator examined old policies rather than practices still in use today.

“Uber used software to track drivers’ (driving) behaviour and to track customer reviews. If that software detected a suspicion of fraud or customer reviews were too low, the accounts of the drivers concerned were automatically deactivated.” continues the Dutch authority. “There was no human assessment here. This occurred between 2018 and 2022.”

Uber also said it takes decisions that affect drivers’ income seriously. The company pointed to human reviews, safeguards and an appeals process for drivers who believe the system made a mistake. The appeal will have to determine whether these protections existed during the period covered by the fine or came later.

And Uber is appealing. The company has stated it disagrees with both the decision and the size of the fine, setting up another round in what’s become a recurring pattern between Uber and Dutch regulators specifically.

This is the fourth time the Dutch authority has fined Uber, which on its own says something about the relationship here. The previous record holder was a 290 million euro fine in 2024 over transferring European drivers’ personal data to the US without adequate protections, a case Uber also appealed at the time. Four fines from a single regulator isn’t really a pattern of bad luck anymore; it’s a pattern of a company and a privacy regulator that keep disagreeing about the same basic question, how much human judgment has to sit between an algorithm’s decision and a person’s actual income.

The case goes beyond Uber. Many gig-economy platforms in Europe use algorithms to manage workers, routes and account status. This ruling shows the cost of relying on automated decisions without human oversight. For companies that use algorithms to make decisions affecting people’s accounts or income, saying “the algorithm decided” is no longer enough. The €825 million fine makes that lesson very clear.

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Pierluigi Paganini

(SecurityAffairs – hacking, newsletter)

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