US look­ing into whether Uber bribed for­eign of­fi­cials

Business World - - FRONT PAGE -

The US Jus­tice de­part­ment is in­ves­ti­gat­ing whether Uber broke Amer­i­can laws against brib­ing for­eign of­fi­cials to pro­mote busi­ness in­ter­ests, the com­pany con­firmed Tues­day. San Fran­cisco-based Uber said it was co­op­er­at­ing with an in­ves­ti­ga­tion into pos­si­ble vi­o­la­tions of the For­eign Cor­rupt Prac­tices Act, but did not dis­close de­tails.

SAN FRAN­CISCO — The US Jus­tice De­part­ment is in­ves­ti­gat­ing whether Uber broke Amer­i­can laws against brib­ing for­eign of­fi­cials to pro­mote busi­ness in­ter­ests, the com­pany con­firmed Tues­day.

San Fran­cisco-based Uber said it was co­op­er­at­ing with an in­ves­ti­ga­tion into pos­si­ble vi­o­la­tions of the For­eign Cor­rupt Prac­tices Act, but did not dis­close de­tails.

The act bars pay­ing of­fi­cials of for­eign gov­ern­ments to get or keep busi­ness.

News of the US probe comes as Uber ap­pears to have found a new hand to steady the wheel at the smart­phone-sum­moned ride ser­vice, which has skid­ded from one con­tro­versy to an­other.

Uber has yet to con­firm re­ports that Dara Khos­row­shahi will re­place ousted Travis Kalan­ick as chief at the world’s most highly val­ued start-up.

How­ever, Ex­pe­dia board chair­man Barry Diller ap­peared to con­firm the choice in a fil­ing with the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC).

“As you prob­a­bly know by now, Dara Khos­row­shahi has been asked to lead Uber,” read a copy of a memo from Ex­pe­dia board chair­man Barry Diller to Ex­pe­dia em­ploy­ees in­cluded in an SEC fil­ing.

“Noth­ing has been yet fi­nal­ized, but hav­ing ex­ten­sively dis­cussed this with Dara, I be­lieve it is his in­ten­tion to ac­cept.”

Uber and Ex­pe­dia did not re­spond to re­quests for com­ment re­gard­ing the CEO choice.

Who­ever takes charge at Uber will face chal­lenges in­clud­ing con­flicts with reg­u­la­tors and taxi op­er­a­tors, a cut­throat com­pany cul­ture and board mem­bers feud­ing with in­vestors over Mr. Kalan­ick.

The US gov­ern­ment ear­lier this year was re­ported to have launched an in­ves­ti­ga­tion into Uber for the use of se­cret soft­ware that en­abled the com­pany to op­er­ate in ar­eas where it was banned or re­stricted.

A soft­ware pro­gram, called Grey­ball, first re­vealed by The New York Times in March, en­abled driv­ers to avoid de­tec­tion from the trans­porta­tion au­thor­i­ties by iden­ti­fy­ing reg­u­la­tors pos­ing as Uber cus­tomers in or­der to deny them rides.

Dents to Uber’s im­age in­clude a visit by ex­ec­u­tives to a South Korean es­cort- karaoke bar, an at­tempt to dig up dirt on jour­nal­ists cov­er­ing the com­pany and the mis­han­dling of med­i­cal records from a woman raped in In­dia af­ter hail­ing an Uber ride. —

THE UBER logo is seen on a screen in Sin­ga­pore, Aug. 4.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.