Uber Hit With Record $11.4 Million Fine in Pennsylvania

Advertisement
By Reuters | Updated: 22 April 2016 11:21 IST
Highlights
  • Uber's fine was reduced from the $49.9 million imposed in November.
  • The fine addresses one of many legal issues facing Uber.
  • Uber argued that it did not qualify as a motor carrier or broker.
Uber Technologies Inc was fined a record $11.4 million on Thursday by a Pennsylvania regulator, which found that the ride-sharing service operated illegally in the state in 2014.

The fine was the largest imposed by the Pennsylvania Public Utility Commission, a spokeswoman said. Uber plans to appeal.

By a 3-2 vote, the PUC said the fine was justified by Uber's having operated without commission authorization from February to August 2014 and failure to respond to requests for information about its operations.

Uber's fine was reduced from the $49.9 million (roughly Rs. 331 crores) imposed in November in an initial ruling by two administrative law judges. The PUC's dissenting commissioners thought even the reduced $11.4 million (roughly Rs. 75 crores) fine was too high.

Advertisement

The PUC regulates transportation providers, including taxis that compete with Uber and rivals such as Lyft.

Advertisement

Uber spokesman Jason Post said the San Francisco-based company was "shocked" by the fine, which is more than 45 times higher than the $250,000 that Lyft paid in a similar case.

He said Uber plans to appeal its fine to a Pennsylvania state court.

Advertisement

The fine addresses one of many legal issues facing Uber, which has won many fans through its aggressive expansion but drawn ire from regulators concerned about driver and passenger safety, and riders upset over high prices.

PUC Commissioner John Coleman, a member of the majority, said the fine was needed to deter others from similar conduct.

Advertisement

He said it was reduced to reflect changes Uber has made to comply with state rules, and the few complaints that Uber has generated since winning a two-year "experimental" license in January 2015.

Uber argued that it did not qualify as a motor carrier or broker and thus did not violate the state's public utility code.

Pamela Witmer, one of the dissenting commissioners, called the fine "egregious" relative to sanctions in cases that, unlike Uber's, involved greater harms such as injuries and death.

Prior to Thursday, the PUC's highest fine had been $1.8 million (roughly Rs. 11 crores), imposed in December against Hiko Energy LLC for deceptive marketing and billing practices.

© Thomson Reuters 2016
 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Apps, Uber, Uber App, Uber Taxi App
Advertisement

Related Stories

Popular Mobile Brands
  1. Best Diwali 2025 Wishes, Quotes, and Facebook Statuses to Share
  2. Thanal Comes to OTT: Everything You Need to Know About This Tamil Action Thriller
  1. Mysterious Asteroid Impact Found in Australia, But the Crater is Missing
  2. Thanal Comes to OTT: Everything You Need to Know About This Tamil Action Thriller
  3. Madam Sengupta Is Now Streaming: Know Where to Watch This Bangla Crime Thriller
  4. Ryugu Samples Reveal Ancient Water Flow on Asteroid for a Billion Years
  5. Scientists Create Most Detailed Radio Map of Early Universe Using MWA
  6. Mayor of Kingstown Season 4 OTT Release: Know When, Where to Watch Jeremy Renner's Crime Drama
  7. Our Fault Is Streaming Now: Know All About This Gabriel Guevara and Nicole Wallace Starrer
  8. The Conjuring: Last Rites Is Now Streaming Online: Know Where to Watch the Latest Installment from the Horror Franchise
  9. Delhi Crime Season 3 OTT Release: Know When to Watch This Shefali Shah Thriller Series
  10. Vast Space to Launch Haven-1, the World’s First Private Space Station in 2026
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.