Uber is paying a $7-million fine to continue running in California
A court bench in the company’s home state had penalised it for failing to provide information to users on accessibility and problems with its drivers.
San Francisco start-up Uber on Wednesday agreed to pay the California Public Utilities Commission $7 million (Rs 47 crore) to continue operating in the state. The company has been locked in a dispute with the commission about how much data it provides to users in its home state. According to The Guardian, a local judge slapped the fine on the on-demand taxi company for failing to disclose problems with its drivers and accessibility information on its vehicles.
While Uber is still appealing that decision, another ruling on January 13 stipulated that Uber either pay the fine within a month or stop operating in the state. The company then decided to comply now and continue the appeal later. “We will pay the fine and continue to work in good faith with the commission,” a statement by the company said.
Legal action such as this is not uncommon in the Silicon Valley, with many start-ups finding regulations imposed on them that they had not considered when launching their services. The trend is part of the industry’s “it’s better to beg for forgiveness than ask for permission” culture.