Adding to its recent legal woes, Uber is facing a criminal probe from the Justice Department, according to people familiar with the investigation. The investigation, which concerns the ride sharing service’s controversial Greyball tracking tool, is reportedly in its early stages. A federal inquiry does not necessarily indicate wrongdoing; criminal charges being brought against Uber executives are also not a guarantee.

Since The New York Times uncovered its existence in March, Greyball has been a lightning rod of controversy. Greyball is a technology that allows Uber to present fake versions of its app to people it does not want in its cars–like city officials looking to reign in the company’s illegal practices–and track them using credit card data and other personal information. Uber claims it used the tool to protect its drivers in new markets, some of which the service operated in illegally, like Portland, Oregon.

After the Times’ report in March, an Uber spokesman said Greyball “denies ride requests to users who are violating our terms of service — whether that’s people aiming to physically harm drivers, competitors looking to disrupt our operations, or opponents who collude with officials on secret ‘stings’ meant to entrap drivers.”

But officials in cities like Portland, where Uber fought through legal hurdles in late 2014 before it began legally operating in the city in April 2015, say the tool was used for more nefarious reasons. According to Portland transportation officials, Uber intentionally skirted 16 city officials who were looking to shut-down the service because it was operating illegally at the time. Uber’s attorneys say the tool was used “exceedingly sparingly” in Portland; it had not been used since April 2015, they said.

Uber and its embattled chief executive, Travis Kalanick, has been embroiled in controversy for much of the year. From a spate of sexual assault accusations to a video of Kalanick berating an Uber driver, the $70 billion dollar behemoth is facing uncertainty as it enters Silicon Valley’s newest frontier: self-driving vehicles. In fact, Uber’s future in that field is increasingly in doubt. It was also recently hit with a lawsuit from Google’s autonomous car division, Waymo, which accused Uber of stealing its trade secrets.

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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Welcome to RantCrush Top 5, where we take you through today’s top five controversial stories in the world of law and policy. Who’s ranting and raving right now? Check it out below:

Trump Claims Obama Wiretapped His Phone

On Saturday, Donald Trump claimed, without stating any evidence, that former President Barack Obama wiretapped his phones at Trump Tower throughout the month before the election. On Twitter, Trump called Obama a “Bad (or sick) guy!” He didn’t say where he got the information, but similar allegations circulated on a conservative radio show and Breitbart the day before. A spokesperson for Obama said the allegation was “simply false.” Then yesterday, the White House demanded a congressional inquiry into the matter. A statement from Sean Spicer called “reports” about it “very troubling,” but he said that the White House would make no further comment until after an investigation is concluded.

There are no credible public sources for this, only Trump’s assertions. And he seems not to have checked w 17 Intel agencies-just Breitbart https://t.co/XnP3NGNZpw

— Trip Gabriel (@tripgabriel) March 5, 2017

These are pretty serious allegations, and it’s important to note that a president doesn’t have the power to just order a wiretapping by himself–requests would normally have to go through the FBI and be approved by a judge. Later on Sunday, FBI Director James Comey asked the Justice Department to publicly reject Trump’s claims, as he is implying that the FBI and Obama potentially broke the law. But the DOJ has been silent and now people are wondering if this is all just a way to divert our attention away from something else.

On @ThisWeekABC, Sen. Al Franken calls Pres. Trump’s wiretap assertion “a distraction.” https://t.co/I4naMV1Nfj pic.twitter.com/NaIRVI6Mew

— ABC News (@ABC) March 6, 2017

Emma Von Zeipel

Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

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The night Uber cars went live on the streets of Portland, Erich England failed to catch a ride. At the time, news reports concluded England failed because of excessive demand. It turns out that Uber, which entered Portland’s market illegally and without approval from the city, was deliberately steering cars away from England, a code inspector who was dispatched as part of a sting operation on the ridesharing service. How was Uber ensuring England, and other city officials, did not find themselves in an Uber vehicle? By using a tracking tool known as Greyball.

Four current and former Uber employees described the Greyball tool to the New York Times as such: when a prospective rider is determined to be a law enforcement authority of any kind, he or she would see the Uber app as any other customer would. But their app would be a fake; the triangular symbols on a map that indicates where Uber cars are located, for the officials, would be “ghost cars.” If by chance a real driver picked up an official, Uber would call the driver to tell them to end the ride.

Skirting city officials, and identifying them, is accomplished through a variety of techniques. In one, Uber would set up a “geofence,” essentially a digital perimeter, around buildings where officials worked. Within the “geofence,” the people who frequently opened and closed the Uber app were sometimes flagged–“Greyballed”–as city officials. When they attempted to hail an Uber, a fake app would replace the real one, and “ghost cars” would replace actual ones. Another technique would examine users’ credit card information to determine whether the card was tied to a city agency. Uber has Greyballed authorities in Boston, Paris, Las Vegas, Australia, China, Italy, and South Korea.

Initially, Greyballing was used as a way to protect drivers in foreign countries where their safety was endangered by angry taxi drivers. In 2015, for instance, taxi companies and workers in Paris attacked Uber drivers. Uber would use the Greyball technique, part of a larger program called VTOS, or “violation of terms of service,” by identifying potentially nefarious actors. When it realized its potential uses in skirting officials from cities where it was unwelcome, the employees said, Uber used Greyball in that capacity as well.

Uber released a statement denying any wrongdoing. “This program denies ride requests to users who are violating our terms of service — whether that’s people aiming to physically harm drivers, competitors looking to disrupt our operations, or opponents who collude with officials on secret ‘stings’ meant to entrap drivers,” a spokesman said.

With an estimated value of $70 billion and a ubiquitous presence in 70 countries, Uber seems like an implacable behemoth. But it has recently been embroiled in controversy, and many people are calling for its CEO, Travis Kalanick to step down. Earlier this week, Kalanick was videotaped by an Uber driver who he got caught in a heated exchange with. And last month, a former Uber engineer detailed sexual harassment she experienced while at the company. Her account was followed by other, similarly disturbing accounts.

Over the past few years, Uber has finagled its way into cities and markets around the world, at times without permission and without regulation. Last year, Uber lost the battle to continue its operations in China. But it remains a wealthy and powerful player in markets around the world. While Uber’s legal team authorized the use of Greyball, some in the company had qualms over the legality of the tool. As the company faces scrutiny from a number of angles, can it figure out a way to survive and continue its dominance?

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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