Why Uber is facing $966M fine in the Netherlands
What's the story
Uber has been slapped with a fine of €825 million ($966 million) by the Dutch Data Protection Authority. The penalty was imposed for deactivating driver accounts through automated systems without proper notification. This is the second-largest fine under Europe's General Data Protection Regulation (GDPR), after a €1.2 billion fine on Meta by Ireland in 2023 for illegally transferring data of European Facebook users to the US.
Appeal process
Uber to appeal against hefty fine
Responding to the hefty fine, Uber said it would appeal against the decision.
"We strongly disagree with this decision and disproportionate fine," a company spokesperson said.
They emphasized that Uber respects drivers' rights and has policies in place for human reviews and opportunities for drivers to dispute platform suspensions.
The Dutch authority confirmed the decision later on Friday, with Monique Verdier, the Dutch Data Protection Authority's deputy chair, saying, "Uber has committed serious infringements."
Automation concerns
'Computer should not make decisions on its own'
Verdier criticized Uber for deactivating driver accounts without warning or human involvement.
She said, "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 against Uber involves European incidents between 2020 and 2022, initially stemming from a French complaint.
Account issues
Uber's defense against allegations
Uber temporarily suspended accounts of some drivers suspected of fraud, like taking unnecessary detours to inflate fares or accepting trips without completing them.
The company said these suspensions were usually brief and didn't permanently deactivate such accounts without human review.
However, the Dutch agency claimed that drivers with low customer ratings were sometimes permanently deactivated by computer, a claim Uber disputed.
Fine details
European regulators imposing penalties on US tech companies
The Dutch authority said the fine was calculated as a fraction of Uber's 2025 annual turnover.
This penalty comes amid European regulators imposing billions in fines on large US tech companies for privacy, competition, and digital market violations.
Despite the penalties, headline fines are often reduced or reversed after years-long appeals processes.