Uber Fined $324M: Is Its Europe Business in Jeopardy?

One of the biggest multinational transport companies in the world, Uber, has been hit with a massive Є290 million($324 million) fine for violating European Union laws for data privacy. According to the Dutch Data Protection Authority, Uber, which has its European headquarters in Amsterdam, transferred the sensitive private information of many of its drivers to the US without using adequate measures to safeguard the data during transmission. The personal data included account details, taxi licenses, photos, identification documents, and some of its drivers’ criminal and medical data. 

However, Uber has rejected the ruling. Uber spokesperson Michael Valvo said in a statement, “This flawed decision and extraordinary fine are completely unjustified.” Europe has a law known as the General Data Protection Law, which was adopted in 2018. It states that people can request their online data and can restrict the way businesses obtain and handle the information. It also states that businesses that take the data of any European citizen outside the region must employ some additional security measures to ensure its protection.  

Also Read: Former Chipmaker Executive To Become The Next CFO Of Uber

Aleid Wolfson, head of the Dutch authority, said in a statement, “Uber did not meet the requirements of the G.D.P.R. to ensure the level of protection to the data with regard to transfers to the United States. That is very serious.” On the other hand, Uber insists that its cross-border data transfer process has always been compliant with European regulations. The company also claimed that it applies the rules of GDPR to all of its European customers and drivers, regardless of which part of the world they are in when using the app. 

The Dutch authorities carried out the investigation at the request of a French group, the Human Rights League, representing 170 Uber drivers who claimed that the company had violated their data privacy rights. However, Uber will not have to pay any fine until a ruling on its appeal, which, according to the company, can take upto four years. 

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