Pennsylvania Fines Uber $11M for Operating Without Approval

By MARK SCOLFORO, ASSOCIATED PRESS
HARRISBURG, Pa. — Apr 21, 2016, 12:58 PM ET

Pennsylvania regulators fined Uber $11.4 million on Thursday — a record for the utility commission — for operating for six months in 2014 without the required approval. The company said it would appeal.

The Public Utility Commission, which also regulates buses and taxis, voted 3-2 for a penalty that was considerably lower than the $50 million fine recommended by a pair of administrative law judges in November.

Commissioners who voted for it justified the lower amount because they said the ride-hailing company has modified its practices to comply with state rules and has not generated many consumer complaints while operating under emergency and experimental authority.

San Francisco-based Uber Technologies, Inc. drew criticism from the judges last year for continuing to operate a month after being issued a cease-and-desist order and for what were described as obstructive actions during the investigation. Commissioners John Coleman and Gladys Brown said the company's actions warranted punishment.

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