Justice Department opens criminal probe into Uber [View all]

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Source: Washington Post

By Elizabeth Dwoskin and Craig Timberg | May 4 at 9:41 PM

The Department of Justice 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 investigation is in its early stages, but 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 high-level 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 to prove that the company was operating illegally.

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In its earlier years, the company employed cutthroat tactics against its competitor Lyft At one point, Uber employees would summon Lyft drivers and then cancel rides. Kalanick once bragged about a feature, called “God View,” which it used to track a journalist and other noteworthy individuals. He has charged into legal battles with transportation regulators and taxi drivers in cities across the world

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Read more: https://www.washingtonpost.com/news/the-switch/wp/2017/05/04/justice-department-opens-criminal-probe-into-uber