Uber faces $966m Dutch GDPR fine over automated driver suspensions
The Netherlands has handed Uber an €825m penalty for algorithmic account deactivations, escalating regulatory pressure on US tech firms and highlighting the financial risks of automated workforce management under European privacy laws.
The Dutch data protection authority has levied an €825m ($966m) fine against Uber for automatically deactivating driver accounts without adequate warning or human oversight. The 17 August decision marks the second-largest penalty ever issued under Europe’s General Data Protection Regulation (GDPR).
This enforcement action underscores the severe financial exposure companies face when deploying algorithmic management tools in the European Union. The penalty trails only a €1.2bn ($1.4bn) fine imposed on Meta by Ireland in 2023, which is currently under appeal.
GDPR rules explicitly prohibit decisions made solely by computer algorithms when they carry significant consequences for individuals, such as employment termination. Such actions mandate meaningful human review and a clear mechanism for individuals to challenge the outcome.
Uber announced it will appeal the ruling. A company spokesperson stated, “We strongly disagree with this decision and disproportionate fine,” adding that the company maintains policies incorporating human reviews and dispute opportunities for drivers.
Dutch authority deputy chair Monique Verdier emphasized the severity of the violation. She stated that drivers lost their income abruptly, noting, “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 investigation covers European incidents between 2018 and 2022, originating from a French complaint and handled in the Netherlands where Uber houses its European headquarters. The regulator found that drivers with low customer ratings were sometimes permanently deactivated by computer systems.
Uber disputes that it ever automated permanent deactivation decisions, arguing that suspensions for suspected fraud were typically brief. The company also highlighted that only a small fraction of its workforce was impacted, citing 126 drivers deactivated across Europe in 2021 due to low customer ratings.
The penalty was calculated as a fraction of Uber’s 2025 annual turnover. Meanwhile, the Swiss digital-rights group PersonalData.IO, which assisted French drivers in uncovering these algorithmic decisions, welcomed the ruling.
Founder Paul-Olivier Dehaye indicated the group is now preparing a class action suit against Uber to seek compensation for affected drivers. This case arrives amid mounting regulatory friction between the US and the EU over technology enforcement.
European regulators have imposed billions in penalties on major US technology firms like Meta, Google, Apple and Amazon in recent years. While headline fines are frequently reduced or reversed after protracted appeals, they continue to represent a material compliance risk for multinational corporations operating in the bloc.
