Uber is now facing a criminal investigation, report says

More drama at Uber.
 By 
Karissa Bell
 on 
Uber is now facing a criminal investigation, report says
The Uber logo is in view on a door at the company headquarters in Taipei, Taiwan, on 12 April 2017 (issued 13 April 2017). On 13 April, Uber held a news conference to announce its return to Taiwan. Uber entered the Taiwan market in 2013 but quit two months ago after being issued fines for violating Taiwanese law. At the news conference, Uber claimed that it has recieved the Transportation Ministry's approval to join a local car-rental company to offer car-hailing service. However, the Transport Ministry has warned Uber that it must comply with all Taiwanese laws before it can operate in Taiwan. Uber returns to Taiwan claiming with official consent, Taipei - 12 Apr 2017 Credit: DAVID CHANG/EPA/REX/Shutterstock

Uber's problems just went from really, really, bad to worse.

As if its months-long PR nightmare wasn't bad enough, the company is reportedly now the subject of a criminal investigation.

The U.S. Department of Justice is investigating the company for its use of a controversial software program known as "Greyball," Reuters reported Thursday.

Greyball, first reported by The New York Times, was a tool developed internally at Uber used to thwart regulators and local officials in cities where they faced regulatory hurdles. Uber employees would use the software to identify government offices and employees, and load fake versions of the app as a means of evading law enforcement and other crackdowns.

The investigation "is still in its early stages," according to the report, which cited two unnamed sources. From the report:

Uber received a subpoena from a Northern California grand jury seeking documents concerning how the software tool functioned and where it was deployed, one person familiar with the request said. That indicates a criminal investigation is underway. The second source confirmed that was the case.

It's not yet clear if Uber will be charged or what the charges may be. Officials in Portland, Oregon, previously came out against the company for its use of Greyball after media reports brought the software to light.

Uber's CTO later said the company would "review" the technology and that it would stop using Greyball as a way to target regulators.

An Uber spokesperson didn't immediately respond to a request for comment.

Topics Uber

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Karissa Bell

Karissa was Mashable's Senior Tech Reporter, and is based in San Francisco. She covers social media platforms, Silicon Valley, and the many ways technology is changing our lives. Her work has also appeared in Wired, Macworld, Popular Mechanics, and The Wirecutter. In her free time, she enjoys snowboarding and watching too many cat videos on Instagram. Follow her on Twitter @karissabe.

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