Uber Record fine $324 Million due to Data Transfers 🇪🇺 ➡ 🇺🇸

[Hof]

https://www.bloomberg.com/news/articles ... fers-to-us

Uber Hit by Record $324 Million Fine for Data Transfers to US

• Uber was fined for not sufficiently protecting driver data

• The fine is the highest penalty ever issued by Dutch regulator

By Sarah Jacob | August 26, 2024 at 11:05 AM GMT+2

Uber Technologies Inc. was hit by a record €290 million ($324 million) by the Dutch privacy watchdog for failing to abide by European protection standards when it shipped swathes of sensitive data about its drivers to the US.

The Dutch Data Protection Authority said Uber was collecting information of drivers from Europe, such as taxi licenses, location data, and in some cases criminal and medical data, and retaining them on servers in the US.

The fine is the highest penalty ever issued by the Dutch watchdog against any company, a spokesperson said by email. It’s also the biggest fine Uber received globally.

The ride-hailing service sent the sensitive data to its US headquarters for over two years without using data transfer tools aimed at protecting privacy, which meant the data were “insufficiently protected,” the watchdog said on Monday. Uber has ended the violation last year, the agency said.

The fine is “completely unjustified,” said Caspar Nixon, a spokesperson for Uber, in response to emailed questions. Uber’s data transfer process was compliant with European laws and the company will appeal against the decision, Nixon said.

Uber didn’t meet the requirements of European laws to “ensure the level of protection to the data with regard to transfers to the US. That is very serious,” Aleid Wolfsen, the Dutch data protection authority’s chairman, said in a statement.

The Dutch data protection authority began its investigation on Uber after more than 170 French drivers complained to a French human rights interest group. The probe was handled by the Dutch agency as Uber’s European headquarters is in the Netherlands.

This is the third penalty by the Dutch data protection authority on Uber. It was previously fined for not providing sufficient transparency about how long it retained data from European drivers and to which countries outside Europe this data was forwarded. In 2018, it was penalized for not informing the Dutch watchdog about a data breach in time.

The fines by European privacy watchdogs can amount to a maximum of 4% of the worldwide annual revenue of a business.

[kc130]

The possibility of Europe emerging companies comparable to FAANMG (Facebook, Apple, Amazon, Netflix, Microsoft, and Google) is a topic of considerable debate. Several factors can either support or hinder this development.

Factors Supporting the Emergence of European Tech Giants

1. Strong Tech Ecosystem: Europe has a established tech ecosystem, particularly in countries like Germany, France, the Netherlands, and the Nordic region. Cities like Berlin, Paris, and Stockholm have become major hubs for startups, supported by a robust network of investors, accelerators, and incubators.

2. High-Quality Talent: Europe has a strong educational system with world-renowned universities, producing a significant pool of tech talent. The region is also home to many skilled engineers, developers, and researchers, particularly in fields like AI, fintech, and green technology.

3. Regulatory Environment: While the European Union's stringent regulations can be seen as a barrier, they also create a level playing field and foster competition. Regulations like the General Data Protection Regulation (GDPR) ensure user privacy, which could be a competitive advantage as global concerns about data security grow.

4. Growing Investment: There has been a noticeable increase in venture capital and government funding in European tech companies. The EU and various national governments have been investing in tech infrastructure and research and development, aiming to boost the region's digital economy.

5. Focus on Sustainability and Ethical Tech: Europe is a leader in sustainability and ethical business practices, which is becoming increasingly important globally. European companies that align with these values may find themselves positioned as consumers and businesses prioritize sustainability.

Challenges to Overcome

1. Scale and Market Fragmentation: One of the biggest challenges is the fragmentation of the European market. Unlike the US or China, Europe consists of multiple countries with different languages, cultures, and regulatory environments. This makes scaling a business across the continent more complex.

2. Regulatory Hurdles: While regulation can be a competitive advantage, it can also be a significant hurdle. European companies often face strict regulations that can slow down innovation and make it harder to compete with more flexible, less-regulated companies from the US and China.

3. Investment Disparity: Despite growing investment, European startups typically receive less funding than their American counterparts. This can limit their ability to scale quickly and invest in the kind of innovation needed to compete with the FAANMG companies.

4. Late Start in the Tech Race: The FAANMG companies have had a significant head start, benefiting from early access to large, homogeneous markets and significant early investments. Catching up to these established giants is a daunting task.

Notable European Tech Companies

Some European companies have shown potential to become major players:

• Spotify (Sweden): A leading music streaming service, Spotify is one of the most successful tech companies to emerge from Europe.
• ASML (Netherlands): A critical supplier in the semiconductor industry, ASML is essential to the global tech supply chain.
• SAP (Germany): A global leader in enterprise software, SAP is one of the largest tech companies in Europe.
• Adyen (Netherlands): A rapidly growing payment processing company that has gained significant international market share.

Conclusion

While Europe faces significant challenges, it has the potential to produce tech companies on par with the FAANMG giants, particularly if it can overcome market fragmentation, increase investment, and leverage its strengths in sustainability and regulation. However, this will likely require a coordinated effort across the continent, along with continued focus on innovation and scaling.

[Lilyamao]

可怜的Uber, 这么整下去怎么赚钱？