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Technology / Software / Electronics
San Francisco, CA, United States
Nationality of Foreign Officials: China, India, Indonesia, Malaysia
Summary of Allegations:
Uber faces questions from the U.S. Department of Justice relating to its operations in multiple countries in Asia, and has asked outside counsel to investigate suspicious activity in at least China, India, Indonesia, and Malaysia.
Specific allegations regarding Indonesian and Malaysian operations were reported in Bloomberg on 21 September 2017:
In Indonesia, Uber reportedly faced a dispute with Indonesia police over the location of an office in Jakarta providing support to local drivers. An Uber employee allegedly made multiple, small payments to police in order to continue operating in the existing location. The transactions showed up on the employee’s expense reports, described as payments to local authorities.
Uber’s counsel is also reportedly investigating certain of the company's activities in Malaysia. According to Bloomberg, a Malaysian pension fund made a $30 million investment in the company. At around that time, Uber made a substantial corporate donation to the Malaysian Global Innovation and Creativity Centre, a government-back entrepreneur hub. Shortly thereafter, the Malaysian government passed national ride-hailing laws that were favorable to Uber and its peers. Lawyers are trying to determine whether there was any form of quid pro quo. Sources familiar with the deals identified former Uber executives Emil Michael and Eric Alexander as having played key roles in the negotiations.
Approximate Alleged Payments to Foreign Officials: Undetermined
Business Advantage Allegedly Obtained: Influence on local law enforcement to permit continued operations in Jakarta; investments and creation of better business environment in Malaysia.
Agencies: United States: Department of Justice
Results:
Year Resolved: 2020
Compliance Monitor:
Ongoing: No
Details:
On 29 August 2017, Uber confirmed that the Department of Justice had taken steps to open a preliminary investigation into whether Uber had violated the Foreign Corrupt Practices Act (FCPA). On 19 September 2017, Uber was reported to have begun an internal investigation that is focusing on review of its Asia operations; the company has notified U.S. officials about payments made by staff in Indonesia.
On 11 April 2019, Uber's SEC filing confirmed receipt of the DOJ requests since May 2017 regarding the above bribery allegations. The investigation is ongoing.
On 2 January 2020, according to Uber's SEC filing, the DOJ has closed the FCPA investigation without recommending further actions.