Department of Justice Begins Investigation Into Uber

The U.S. Department of Justice has begun a criminal investigation into Uber's use of a software tool that helped its drivers evade local transportation regulators, two sources familiar with the situation told Reuters.

Uber acknowledged the software, known as "Greyball," helped it identify and circumvent government officials who were trying to clamp down on Uber in areas where its service had not yet been approved, such as Portland, Ore., Reuters noted.

The company prohibited the use of Greyball for this purpose shortly after The New York Times revealed its existence in March, saying the program was created to check ride requests to prevent fraud and safeguard drivers. The Times report triggered a barrage of negative publicity for the company, which already was struggling with a number of business and legal issues.

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This article was written by a staff member of TheStreet.