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Home » AI News » Uber faces fine of nearly $1B over automated driver suspensions
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AI News

Uber faces fine of nearly $1B over automated driver suspensions

CryptoAINewsBy CryptoAINewsAugust 24, 2026No Comments3 Mins Read
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The Dutch Information Safety Authority is fining Uber €825 million (round $966 million) — the second largest penalty issued to date below Europe’s Basic Information Safety Regulation, according to Reuters.

The Dutch regulator was investigating complaints that Uber had deactivated driver accounts via an automatic course of with out adequate warning or human oversight. In a press release, deputy chair Monique Verdier stated that the corporate had “dedicated severe infringements.”

“A pc mustn’t make choices by itself which have [such] main penalties,” Verdier stated.

Uber, nonetheless, argued that the majority driver suspensions are temporary, that no everlasting deactivations happen with out human evaluate, and that drivers have the flexibility to attraction. (Dutch regulators stated some drivers had been completely deactivated with out human evaluate, which Uber disputes.) The corporate stated it should attraction the choice.

“We strongly disagree with this determination ​and disproportionate superb,” an Uber spokesperson informed Reuters. TechCrunch has reached out to the corporate for extra remark.

Brahim Ben Ali, a former Uber driver in France, told the Dutch newspaper de Volkskrant that after his account was deactivated in 2019, he collected testimonies from 170 different Uber drivers and ultimately introduced his grievance to the Netherlands, the place Uber’s European headquarters are positioned.

Ben Ali was assisted on this effort by a Swiss nonprofit centered on digital rights referred to as PersonalData.io, which helped the drivers accumulate knowledge about how the deactivation choices had been made. Founder Paul-Olivier Dehaye stated a driver “can full a thousand journeys with happy passengers, but when only one individual stories a really major problem, the implications may be huge.”

Dehaye informed me that that is the third superb that the Dutch regulator has levied on Uber, following a €290 million fine over its handling of drivers’ personal data and a €10 million fine stemming from related issues. He additionally stated he plans to start out a category motion swimsuit via which drivers can search compensation.

In actual fact, Dehaye stated these fines all originate with complaints made by the identical group of drivers. And he’s beginning a brand new firm referred to as StartClaims to assist the litigation and different regulatory motion — first towards Uber after which ultimately increasing to different gig financial system circumstances, in addition to associated areas like adtech.

Whereas discussing the case with Dehaye (who I’ve recognized casually since school), I introduced up a blog post by Daring Fireball’s John Gruber, through which Gruber nervous that this superb makes it “illegal within the EU for Uber to watch its drivers for pulling scams towards prospects, or simply by no means selecting riders up, leaving them stranded.”

Gruber additionally took difficulty with Verdier’s assertion, arguing, “Saying that ‘a pc’ made these choices is like saying that when an organization suspends or fires a habitually late worker, that ‘the time clock’ made the choice. Managers on the firm set the insurance policies, and the units measure worker compliance.”

Dehaye countered that Gruber “misses the purpose.”

“Uber is free to make use of people to punish drivers who rip-off, however then [it] has to take duty for this determination making (like ‘being an employer’, not ‘being a market’),” he stated.

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