The Justice Department has launched a criminal investigation into Uber's use of a secret software that was used to evade authorities in places where its ride-hailing service was banned or restricted, according to a person familiar with the government's probe.The struggle against competition.
The investigation, in its early stages, deepens the crisis for the embattled company and its chief executive and founder, Travis Kalanick, who has faced a barrage of negative press this year in the wake of high-profile sexual harassment complaints, a slew of executive departures, and a consequential trade-secrets lawsuit from Google's parent company.
The federal criminal probe, first reported by Reuters, focuses on software developed by Uber called "Greyball." The program helped the company evade officials in cities where Uber was not yet approved. The software identified and blocked rides to transportation regulators who were posing as Uber customers in an effort to prove that the company was operating illegally.
Uber declined to comment on the criminal investigation. The Justice Department declined to comment, citing its practice of not confirming or denying possible investigations.
Friday, May 05, 2017
Justice Department opens criminal probe into Uber's use of secret 'Greyball' software
The Chicago Tribune reports: