Business

DOJ Wants To Know If Uber Committed Bribery With A Foreign Country

REUTERS/Danish Siddiqui

Daily Caller News Foundation logo
Eric Lieberman Managing Editor
Font Size:

The U.S. Department of Justice (DOJ) has launched a preliminary investigation into Uber over suspicions that the company may have unlawfully conducted bribery with a foreign authority, according to a Wall Street Journal report published Tuesday.

The DOJ will consider opening a more formal, full case into the matter if it finds any hints of impropriety. The specific law that Uber may have breached is the Foreign Corrupt Practices Act, which says that no person or organization may “make payments to foreign government officials to assist in obtaining or retaining business.” Even though Uber confirmed that the company is working with the DOJ, it is not yet clear what country (or countries) could have been involved in the potential violation. Nevertheless, Uber has been trying to spread its reach to various corners of the world for years.

Uber announced in June that it had garnered $3.5 billion from Saudi Arabia’s Public Investment Fund, which was considered one of the largest fundings for a private start-up. Soon after it sought a $2 billion loan from four of the world’s biggest banks to add to an already huge collection of cash.

Uber and its Chinese rival, Didi Chuxing Technology Company, were in an arms race to be the premier global option for ride-sharing services, until the U.S. tech company sold its subsidiary company to its foreign counterpart. Uber reported $1.27 billion in losses before interest, taxes and other financial considerings in just the first six months of 2016, according to Bloomberg, which cited its endeavors in China as a main reason. (RELATED: Uber Is Leakier Than The Trump Administration)

The latest news of the inquiry comes at a fairly inopportune time. Uber’s board of directors selected Iranian immigrant and former Expedia CEO Dara Khosrowshahi to take over as chief executive of the embattled ride-sharing startup turned tech conglomerate. The new CEO was supposed to be a breath of fresh air for the company, but the problems of old may linger long enough to adulterate any sense of reinvigoration.

Uber did not respond to The Daily Caller News Foundation’s request for comment by time of publication.

Follow Eric on Twitter

Send tips to eric@dailycallernewsfoundation.org.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.