Daily News

View All News

Uber’s sees new legal woes (Time, Bloomberg, Reuters)

September 02, 2016

Time magazine reports China’s commerce ministry is investigating the planned acquisition by ride-hailing firm Didi Chuxing of its US rival Uber’s China unit over anti-monopoly concerns. Ministry spokesman Shen Danyang said on Friday the Ministry of Commerce would look to protect fair market competition and consumer interests in the deal, which will create a roughly $35 billion giant dominating China’s car-hailing market. The sale was announced last month.

Meanwhile, Bloomberg reported Uber was dealt a second rejection of a legal settlement, this time in a case over claims the company misled riders when it charged them a $1 “safe rides fee” that earned the company almost half a billion dollars. USDistrict Judge Jon Tigar in San Francisco said the proposed $28.5 million payout wasn’t enough for customers, considering how much Uber took in from the fees. That revenue was nearly $448.6 million, almost three times the sum Uber was thought to have collected from the fees and close to 16 times the amount of the settlement fund, according to what appears to be an improperly redacted version of the court’s order.

Additionally, A Pennsylvania regulator on Thursday reinstated a record $11.4 million fine against Uber for operating illegally in the state in 2014, Reuters reports. The Pennsylvania Public Utility Commission rejected Uber’s arguments that the penalty, six times larger than any it had imposed, was unnecessary and excessive. The PUC, which regulates taxi services and Uber rivals such as Lyft, had sanctioned Uber for having from February to August 2014 provided 122,998 rides in Pennsylvania without prior approval, and obstructing a state probe into its operations. It imposed the fine on April 21, reducing it from the $49.9 million ordered by two administrative law judges.