Italy’s data protection authority Garante on Monday fined food delivery company Foodinho €2.6 million (U.S. $3.1 million) because the app at the core of its business model allegedly discriminated against employees.

Garante found the app’s algorithmic rating system—which relies on a mathematical formula that can penalize or prioritize riders depending on how many jobs they accept, fulfill, complete on time, or reject—was biased and violated the EU’s General Data Protection Regulation (GDPR) principles around transparency and lawfulness of processing.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...