Uber Is Said to Face FBI Investigation as Compliance Chief Exits

Uber Is Said to Face FBI Investigation as Compliance Chief Exits

Foto: Fotolia

Uber is under investigation by federal authorities in New York for its alleged use of a spyware program designed to undermine competition for its digital ride-hailing service, according to Bloomberg, citing people familiar with the matter.

The executive charged with making sure Uber follows the law, Global Head of Compliance Joseph Spiegler, resigned last week after a year and a half on the job, according to two people. Uber is searching for a replacement, one of the people said.

Federal prosecutors and FBI agents in Manhattan have been investigating a program nicknamed “Hell” at Uber that allegedly allowed the company to spy on drivers from competing service Lyft. The program was said to identify drivers who worked for both companies and targeted them with cash incentives to shift their allegiance to Uber. The program was allegedly used from 2014 to 2016, the people said.

U.S. authorities are already investigating the company on two other fronts: another program nicknamed “Greyball” that was allegedly used to deceive regulators about its operations; and possible violations of the Foreign Corrupt Practices Act, which bans payments of bribes to foreign officials. The Greyball investigation is being overseen by federal prosecutors in San Francisco, while the foreign payment case is being handled out of Justice Department headquarters in Washington.

More from category

Microsoft Announces Quarterly Dividend and Changes to Board of Directors

Microsoft Announces Quarterly Dividend and Changes to Board of Directors

20 Sep 2017 comment

Microsoft announced that its board of directors declared a quarterly dividend of $0.42 per share, reflecting a 3 cent or 7.6 percent increase over the previous quarter’s dividend. It is payable Dec. 14 to shareholders of record on Nov. 16.

Bain-Led Group to Buy Toshiba Chip Unit in $18 Billion Deal

Bain-Led Group to Buy Toshiba Chip Unit in $18 Billion Deal

20 Sep 2017 comment

Toshiba’s board agreed to sell its flash memory chip unit to a group led by Bain Capital for 2 trillion yen ($18 billion), taking an important step toward ending a contentious bidding process that has stretched over eight months, according to Bloomberg.

Twitter Suspends 300,000 Accounts Tied to Terrorism in 2017

Twitter Suspends 300,000 Accounts Tied to Terrorism in 2017

20 Sep 2017 comment

Twitter, under pressure to combat online extremism, said that improving automation tools is helping them block accounts that promote terrorism and violence, according to Bloomberg.