Uber avoided regulators with a tool called 'Greyball,' report says

According to The New York Times, Uber has been using a tool called Greyball to identify regulators and show them a dummy version of the app if they try to use its ride-hailing service.The company has been employing the tactic in areas that have outlawed the service since as early as 2014, the Times said.Sources told the Times that the tool is part of Uber’s Violation Of Terms Of Service program, which is intended to block people using the app inappropriately. However, rather than just monitor ill-intentioned users, Greyball was used in cities such as Paris, Boston, Las Vegas and Portland, Ore., to avoid regulators trying to catch Uber violating the law.At issue in many of these cities is the platform’s UberX service, which allows noncommercial drivers to use their own vehicle to transport customers. Regulators, such as those in Austin, Texas, balked at the lack of background-check requirements for drivers and moved to ban the service. In most cases, Uber was able to reach a compromise with local governments and resume operation.However, according to anonymous Uber employees who spoke to the Times, the company continued to operate after these bans. It flagged potential law enforcement officials using methods such as geo-fencing city offices and marking frequent users in that area, and looking into users’ payment profiles to see if credit cards were tied to police credit unions. Sometimes it went as far as searching users’ social media profiles.