Imposing Regulation on Advanced Algorithms by Fotios Fitsilis

Author:Fotios Fitsilis
Language: eng
Format: epub
ISBN: 9783030279790
Publisher: Springer International Publishing

In a further US lawsuit filed in 2017 in front of the Central District Court in California, Uber is charged to have implemented an “active, extensive, methodical scheme … to defraud drivers.”94 Uber is pricing its services using an algorithmic pricing system, which calculates the total fare before, instead of after, a ride. According to the claim, Uber uses “a base fare plus a per-mile and per-minute charge for the estimated time and distance of the travel, respectively.”95 An Uber driver, Mr. Sophono Van, claimed that the company manipulated the software in the Uber app to calculate longer and slower routes than the typical one needed to reach a passenger’s destination. Hence, according to the plaintiff of this class suit,96 the fare for the passenger would be higher, while the driver’s commission is calculated based on the typical (cheaper) route, with Uber keeping the difference. Should these allegations prove correct, then this will constitute another case of algorithmic misconduct, similar to US v. VW, where a defeat device was used to trick emission tests in diesel engines. In the following paragraphs, a series of general issues regarding the operation of software platforms in the sharing economy are discussed.

Concerns regarding algorithmic bias have been presented in Sects. 2.​1.​1 and 2.​2. In the Uber case, decentralized decisions by each host, on whether or not to accept customers, may allow for instances of discrimination. The findings of a relevant US study demonstrate that participation, pricing, and ratings on Airbnb are in accordance with existing racial inequalities.97 This happens in spite of the overall ameliorative effect that the use of the platform can have on the economy of the affected groups.98

The issue of platform operators’ liability for the activities their platforms facilitate or coordinate, is still under debate. This, however, is not a specific focus of this book. Nevertheless, liability represents one of the critical issues that employment will be confronted with in the sharing economy era.99 In the US, because of the determination to create a friendlier environment for innovation, decreased liability for Internet Service Providers (ISPs) was ensured through legislation such as §230 of the Communications Decency Act (CDA). In 2018, a first relevant federal ruling on the sharing economy stated that Uber limousine drivers are independent contractors and not the company’s employees within the meaning of the Fair Labor Standards Act.100 The EU is looking forward to reform the current rules governing ISPs copyright liability beyond the Directive on electronic commerce (2000/31/EC) and the copyright Directive (2001/29/EC). After long discussions, the new Directive 2019/790 is about to enter into force.101 The underlying discussion on the necessity for pan-European liability rules, as well as relevant CJEU case law, is presented in a paper ordered by the European Parliament’s Committee on the Internal Market and Consumer Protection.102

In addition, in the sharing economy, the issue of ‘offer of universal service’ is at stake. For instance, Taxi fleets and conventional hotels are required to provide a percentage of vehicles and rooms, respectively, that can accommodate wheelchairs.

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