Economy

Federal Bureau of Investigation probing if Uber used software to interfere with rivals

Federal Bureau of Investigation probing if Uber used software to interfere with rivals”

Lyft drivers filed a class-action lawsuit against Uber over the Hell program in San Francisco federal court in April.

Uber is facing a federal law enforcement investigation into whether it illegally used a software program to sabotage competitors like Lyft, according to The Wall Street Journal.

Uber Technologies Inc.is under investigation by federal authorities in NY for its alleged use of a spyware program, according to reports. It would also be able to confirm the identity of the Lyft driver and then check if they also worked for Uber.

"Uber created fake Lyft customer accounts, tricking Lyft's system into believing prospective customers were seeking rides in various locations around a city. That allowed Uber to see which Lyft drivers were nearby and what prices they were offering for various routes", the Journal reports. "The impacted clients were fully reimbursed and over the past several years we have taken significant steps to strengthen our controls for our transition management business, and more broadly to enhance our compliance program, culture and operating environment", State Street said. That's a good sign for the company, although the judge did dismiss the complaint with leave to amend.

The FBI's NY office and the Manhattan U.S. attorney's office are leading the probe.

Local and national governments also accused Uber of evading authorities and circumventing regulations by using a secretive proprietary tool called "Greyball", according to The New York Times.

Uber had not made any comment at the time of publication. After more information surfaced through the court proceedings, a USA judge called for a federal investigation along with the already ongoing civil suit.

Uber's new CEO Dara Khosrowshahi inherited an Uber that's riddled with problems that need fixing, and a lot of them have complex legal aspects.



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