Uber Fined $7.3 Million for Hiding Info From California Regulators
Judge fines Uber $7.3 M, suspends service in California.
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Uber picked up a hefty tab Wednesday when a judge fined the taxi-alternative’s California subsidiary $7.3 million. The fine was slapped for Uber’s refusal to give state regulators information about its business practices.
The fine was part of a ruling by an administrative law judge at the California Public Utilities Commission, the regulatory agency that allowed Uber and its competitors such as Lyft to operate in the state as long as the companies reported aspects of their activities.
The judge agreed with utility commission staff who said Uber’s California subsidiary, Rasier-CA, has not filed all required reports, specifically about how often it provided disabled-accessible vehicles, places where drivers tend to turn down ride requests, and the causes of accidents.
Uber’s app allows passengers to request a ride directly from drivers in the area; it also allows drivers to decline the request. The utilities commission wants to see whether drivers are accepting fares evenly.
In a written statement, Uber spokeswoman Eva Behrend called the ruling and fine “deeply disappointing” and said the company would appeal.
Uber has already provided substantial amounts of data to the California Public Utilities Commission, information we have provided elsewhere with no complaints.
– Eva Behrend, Uber spokeswoman
The utilities commission also declared that Uber was the only company of its kind not to comply with the reporting requirements.