njb2689100616299orig
Internet

Pennsylvania slapped Uber with an $11.4 million fine for operating without a license

The Pennsylvania Public Service Utility Commission has voted to fine Uber US $11.4 million for operating without its authority and failing to comply with data requests for an investigation.

The PUC's vote on Thursday reduced the fine from the $49.9 million that administrative law judges had recommended last year. The PUC had accused the ride-hailing service of operating without a PUC license from February to August 2014.

The PUC reduced the fine because Uber has modified its internal practices to comply with the commission's conditions. The company has not had significant compliance problems since the PUC granted it authority to operate, Commissioner John Coleman Jr. said in a statement.

The final fine is "necessary to deter Uber" and other companies from future violations, Coleman said.

Uber said it was shocked at the size of the fine after competitor Lyft paid a $250,000 settlement to the PUC to resolve a similar complaint last July.

"There was no actual harm to Pennsylvanians, and the Commission subsequently approved the same operations," Uber said in a statement. 

Two of the PUC's five commissioners voted against the fine. The penalty was "egregious" compared with more serious cases, some of which involved serious injuries or fatalities, Commissioner Pamela Witmer said in a statement.

Uber launched in Allegheny County, Pennsylvania, in February 2014, without getting commission authority to operate a taxi-like service. The company filed an application for two-year, experimental authority in April of that year, and the commission granted the application in July, about three weeks after its administrative law judges issued a cease-and-desist order.

IDG Insider

PREVIOUS ARTICLE

« Sears' latest lawnmower sends maintenance reminders to your smartphone

NEXT ARTICLE

One of GNU/Linux's most important networking components just got an update »
author_image
IDG News Service

The IDG News Service is the world's leading daily source of global IT news, commentary and editorial resources. The News Service distributes content to IDG's more than 300 IT publications in more than 60 countries.

  • Mail

Recommended for You

International Women's Day: We've come a long way, but there's still an awfully long way to go

Charlotte Trueman takes a diverse look at today’s tech landscape.

Trump's trade war and the FANG bubble: Good news for Latin America?

Lewis Page gets down to business across global tech

20 Red-Hot, Pre-IPO companies to watch in 2019 B2B tech - Part 1

Martin Veitch's inside track on today’s tech trends

Poll

Do you think your smartphone is making you a workaholic?