Uber (UBER) has been hit with a hefty fine of €290 million ($324 million) by the Dutch Data Protection Authority (DPA) in the Netherlands. The penalty was imposed on the ride-hailing service after it was found that the company had unlawfully transferred the personal data of European taxi drivers to the United States. The DPA noted that this was in violation of EU regulations. While the DPA acknowledged that Uber has since halted this practice, the damage had already been done.
Uber’s Response to the Fine
In response to the ruling, Uber’s spokesperson criticized the decision, calling it “flawed” and describing the fine as “extraordinary and completely unjustified.” Furthermore, the spokesperson defended the company’s actions, stating that Uber’s cross-border data transfer process was compliant with the General Data Protection Regulation (GDPR) during a troublesome three-year period characterized by significant uncertainty between the EU and the U.S.
Moreover, Uber plans to appeal the decision and expressed confidence that “common sense will prevail.”
What Is the General Data Protection Regulation (GDPR)?
The GDPR is a tough data privacy law in the EU that came into effect in 2018. This law governs how companies process and transfer the personal data of individuals in the EU. The GDPR applies not only to EU and European Economic Area (EEA) member states but also to organizations outside the EU that target EU residents.
DPA’s Investigation Into UBER
In light of these regulations, the DPA’s investigation found that Uber had transferred personal data to the U.S. without sufficient safeguards. This was a serious breach of the General Data Protection Regulation (GDPR). The severity of the breach became evident when the DPA’s investigation began following a complaint lodged by a French human rights organization on behalf of more than 170 taxi drivers in France. Initially filed with France’s data protection authority, the complaint was referred to the DPA due to Uber’s European headquarters being based in the Netherlands.
Additionally, in a related case earlier this year, the DPA imposed an additional fine of €10 million ($11 million) on Uber for violating privacy regulations concerning its drivers’ personal data.
What Is the Fair Value of Uber?
Analysts remain bullish about UBER stock, with a Strong Buy consensus rating based on 31 Buys and one Hold. Over the past year, UBER has surged by more than 60%, and the average UBER price target of $87.93 implies an upside potential of 18.3% from current levels.
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