Uber Is Said to Face FBI Investigation as Compliance Chief Exits

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.