Uber Technologies, Inc (NYSE: UBER) faces legal challenges in the European Union for allegedly failing to comply with the EU's algorithmic transparency requirements.
The Amsterdam District Court has ruled against the ride-hailing company in a case brought by two drivers. Uber terminated their accounts partly due to automated account flags, TechCrunch reports.
The court is imposing daily fines on Uber for ongoing non-compliance, which have now exceeded €584,000.
The drivers seek information on significant automated decisions about them, a right protected under the EU's General Data Protection Regulation (GDPR).
The legal issue centers around Uber's automated flags that trigger account reviews for potential fraud, not the subsequent human checks. Uber has argued against disclosing more data to drivers, citing commercial secrets and the functionality of its anti-fraud systems.
In two cases, the court found Uber did not provide any information about the automated flags, constituting a breach of EU algorithmic transparency rules. In another case, the court ruled that Uber had provided sufficient information.
The drivers involved in the case are supported by the Worker Info Exchange and the App Drivers & Couriers union, emphasizing the broader implications for worker rights in the age of algorithmic management.
Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Meta Platforms, Inc (NASDAQ: META) also suffered an EU antitrust setback under the General Data Protection Regulation.
Price Actions: UBER shares traded lower by 0.62% at $44.33 on the last check Friday.