Image Source: PixabayUber Technologies Inc. (UBER) faced a significant setback on Monday as European Union regulators imposed a massive fine for violating data protection rules, while the company’s stock experienced a downturn amid broader market fluctuations.
The ride-hailing giant was fined 290 million euros ($324 million) for improperly transferring European drivers’ personal data to the United States, one of the largest fines under the EU’s General Data Protection Regulation (GDPR) to date.
UBER Fined $324 Million Under EU’s GDPR
The Dutch Data Protection Authority (DPA) levied the fine after determining that Uber had failed to “properly safeguard” European drivers’ personal information during its transfer to U.S.-based servers. The violation involved sensitive data including account details, taxi licenses, location data, photos, payment information, and identity documents. In some instances, even criminal and medical data of drivers were transferred without adequate protection.The investigation was initiated following complaints from 170 French Uber drivers. The DPA described the violation as “very serious,” stating that Uber “did not meet the requirements of the GDPR.” The company has since ceased the practice, according to the regulator.
Uber, however, plans to appeal the ruling, calling it “completely unjustified” and arguing that the data transfer process was compliant during a period of “immense uncertainty” between the EU and US. This case follows other significant GDPR fines against major tech companies, including a $1.3 billion penalty imposed on Meta in 2023 for a similar violation. The Dutch DPA led the investigation due to Uber’s European headquarters being located in the Netherlands.
Uber Stock Dips on the News
As news of the fine broke, Uber’s stock price reflected investor concern. As of 11:18 AM EDT, UBER was trading at $72.67, down $1.63 or 2.19% from its previous close. Despite the day’s decline, the company’s stock has shown strong performance over longer periods, with year-to-date returns of 18.06%, outpacing the S&P 500‘s 17.79% gain.Uber’s market capitalization stood at $152.717 billion, with key financial metrics including a trailing P/E ratio of 80.76 and earnings per share of $0.92. The company’s revenue for the trailing twelve months was reported at $40.06 billion, with a profit margin of 5.02% and return on equity of 19.18%. Despite the current dip, analyst recommendations largely remain positive, with the majority suggesting “Buy” or “Strong Buy” ratings and an average price target of $77.95, above the current trading price.More By This Author:Will Nvidia Deliver Again In Its Upcoming Quarterly Results? Stocks To Watch Today: Tesla, GM, And NvidiaOpera Q2 Revenue Hits $109.7 M, Better Than Expected
