The Department of Justice launched a criminal investigation into Uber over a program it used to deceive regulators, Reuters reported, citing a person familiar with the probe, late Thursday.
The federal inquiry states the popular ride-share company used a software tool called Greyball to gain access into new markets where its service was not yet approved, such as Portland, Oregon.
The New York Times exposed Uber's use of Greyball on March 3. Uber discontinued the program five days later.
A woman gets in an Uber car at LaGuardia Airport in New York, Wednesday, March 15, 2017.
Uber lawyers said in letters to Portland authorities, which Portland made public in a report last week, that the Greyball technology was used "exceedingly sparingly" in that city, before the service was approved there in 2015.
The company said greyballing refers to the practice of showing some customers a different version of the app than most customers see.
The investigation is still in its early stages, sources told Reuters.
Hacker News, where discussion of a criminal investigation of Uber turns into an argument about whether money laundering should be a crime— Matthew Garrett (@mjg59) May 5, 2017
Some people have strong feelings about discussions surrounding the Uber investigation.