The drumbeat of Uber news just won’t stop.
The global ridesharing company, which has come under added scrutiny for allegations of sexism and various other lawsuits in recent months, may be finding itself in more hot water.
According to The Wall Street Journal, the Department of Justice is evaluating whether managers breached the Foreign Corrupt Practices Act, which relates to bribing foreign officials. The story says that right now they are just taking “preliminary steps” and it may or may not lead to a full-fledged investigation.
The report says it’s unclear if this relates to one country or multiple countries. Uber tells us they are cooperating with an investigation.
On Sunday, Expedia CEO Dara Khosrowshahi was offered the role of Uber CEO, although he hasn’t technically accepted it yet. The seat had been vacant since June, when co-founder Travis Kalanick was pressured to resign.
Uber’s business spans six continents and the company often faces stiff competition from local operations. They effectively had to give up in Russia and China, joining forces with the enemies.
The company has been known to take regulatory risks and has been accused of breaking the law in multiple countries, often related to concerns about unfair competition with taxis. Recently, they’ve faced challenges in Europe with France and Italy questioning its legality.
Uber isn’t the first company to undergo scrutiny related to foreign bribes. The law was passed in 1977 and there have been a number of cases in recent years, including with Alcoa.