Justice Department investigating Uber “Greyball” operations in Austin.

Looks like the Feds have started contacting municipalities who may have been affected by Uber’s Greyball operation. Greyball was a system designed to thwart local regulators when Uber moved into a new city.

A city spokesman confirmed that Justice Department officials contacted staffers at Austin’s Transportation Department and Aviation Department seeking information about Uber’s operations and regulatory information while the ride-hailing behemoth provided rides in Austin.

Source : myStatesman

U.S. Justice Department launches criminal probe of Uber

In March, the New York Times reported that Uber used a software program called “Greyball” to thwart local transportation regulators. Now, the U.S. Justice Department has launched a criminal probe of Uber because of that software program.

Criminal probe of uber

Also, a grand jury in Northern California has sent Uber a subpoena “seeking documents concerning how the software tool functioned and where it was deployed.” There’s an old axiom in legal circles. A prosecutor could get a grand jury to indict a ham sandwich. The reason is that there’s no defense. There’s just a jury, and a prosecutor. The prosecutor gets to present whatever he or she feels like to the grand jury. Usually, a prosecutor doesn’t call a grand jury unless they think they can build a case. In other words, expect indictments at some point.

Source: Reuters