EU fines Uber €825M for unchecked algorithmic decisions

The European Commission has imposed a record €825 million fine on Uber for entrusting critical decisions to algorithms without sufficient human oversight. The penalty targets illegal practices in pricing, driver assignments, and account suspensions.

Autonomous algorithms, a serious offense

Uber was sanctioned for using automated systems that, between 2020 and 2025, made decisions without adequate human supervision. These algorithms set fares, assigned rides to drivers, and suspended accounts — including those of customers or partners — without transparent appeal options. The European Commission argues that these practices violate the AI Act, which came into force in 2024 and bans autonomous decision-making systems in sensitive areas without user safeguards.

The €825 million fine, the highest ever imposed for this type of breach, represents 6% of Uber’s global revenue in 2025. The Commission notes that the company maintained these practices despite multiple warnings, including a first investigation opened in 2023.

A strict European regulatory framework

The EU AI Act, adopted in 2024, classifies automated decision-making systems in transport and digital services as “high-risk.” These systems must ensure transparency, traceability, and the ability for users to contest decisions. According to the Commission, Uber failed on all three counts, with cases where drivers were excluded from the network without clear explanation or fares were manipulated opaquely.

The penalty comes as other countries, such as China, begin to regulate manufacturer liability for offenses committed by autonomous vehicles. In Europe, this decision could set a precedent for other platforms using similar algorithms.

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Reactions and next steps

Uber has announced its intention to appeal, arguing that its systems comply with current standards and that improvements have been made since 2025. “We take this decision very seriously and are already working to strengthen our compliance processes,” a company spokesperson said. The Commission, for its part, stated that the fine must be paid within 90 days, or face additional penalties.

This sanction is part of a series of European measures to regulate AI use, such as the mandatory labeling of AI-generated content, which came into effect in early August 2026.

The decision against Uber marks a turning point in the enforcement of European law in the AI era. It underscores that algorithms, no matter how advanced, cannot replace human decision-making processes without a strict framework — a message that resonates far beyond the transport sector.