Uber is finally admitting to wrongdoing and will pay a $2 billion settlement with US regulators over its alleged collusion with a travel agency that allegedly used fake Uber drivers to collect fares.
The company also says it will work with regulators to ensure that all of its business is conducted in compliance with the law and the FTC’s settlement.
“We are pleased to have reached this important agreement with the Department of Justice,” Uber chief executive Travis Kalanick said in a statement on Thursday.
Uber has faced fierce criticism over the allegations and its conduct.
Uber’s chief legal officer, Josh Levy, resigned in October amid allegations that he was trying to mislead investors.
It has also been accused of misleading investors in its public statements and of having a hostile work environment.
On Thursday, the Justice Department said it would file a complaint against Uber in the Federal District Court in San Francisco, California.
Kalanick said the settlement would allow the company to better protect its drivers, and also allow the Justice and FTC to “continue to work together to ensure compliance with antitrust laws.”
The agreement is the largest settlement for a US consumer product company in history, the DOJ said.
FCC rules prohibit companies from using drivers to pick up passengers.
The FTC has previously said that Uber’s practices are illegal.
In the statement, Uber said it is cooperating with regulators.
It also agreed to pay $50 million to settle allegations by the Federal Trade Commission that it improperly manipulated the pricing of rides and the amount of revenue from those rides.
The FTC investigation began after the agency filed a lawsuit in September 2018 against Uber.
Read more: The agency alleges that Uber violated antitrust laws by allowing its drivers to use Uber’s app to collect payments from customers.
According to the FTC, Uber used a fake Uber driver to collect a $5 fare from a rider in Washington, DC, on June 10, 2019.
As part of the settlement, Uber agreed to remove the driver from its app, and would pay $1 million for each rider it used the driver to pick-up.
For more news on Uber, read the company’s statement and read the FTC complaint.
This is the second settlement between Uber and the Justice, FTC and DOJ.
In September, the agency said it had reached a $3 billion settlement in a separate case.