Uber has been using a secret tool called ‘Greyball’ to evade authorities

Uber on Friday acknowledged the use of a secret software program to steer drivers away from trouble, including sting operations by local authorities to catch lawbreakers. Additionally, the method was used in Australia, China, Italy, and South Korea.

The San Francisco-based company admitted the program existed, but said its objective was aimed at rivals and users. Or Uber can check if a credit card used to sign up for its service is linked to a police credit union. That operation is called “violation of terms of service” or VTOS, which addresses everything from competitors looking to disrupt Uber’s operations to law enforcement looking to catch violators of government taxi regulations.

Today’s yarn from the NYT claims that even after Uber struck a deal to operate in Portland, the Greyball code was used in that city and others around the globe where Uber operated under close scrutiny. It began as a way to resume or commence operations in locations where services such as Uber’s aren’t allowed.

Essentially the Greyball tool collects data from the app to avoid officials who were “trying to clamp down on the ride-hailing service”, notes the report.

Three days after launching, Uber was sued by the city for operating without a permit, and the company agreed to suspend its operations in Portland for a period. The state legalized ride-hailing apps like Uber in 2013, becoming the first in the nation to adopt a framework that regulated the new type of transportation service. They include setting up a geofence around the office buildings of public officials and searching social media profiles to determine if a user was an official likely to be involved in a sting operation, the Times reports.

Greyball, which has been in use since as early 2014, was part of a larger programme called “Violation of terms of service” (VTOS) created by Uber to detect people it felt were using the app inappropriately, the New York Times reported.

In a statement to the Times, Uber characterized the program as one that is used to protect its drivers.

To build a case against the company, officers like Mr. England posed as riders, opening the Uber app to hail a auto and watching as miniature vehicles on the screen made their way toward the potential fares.

It’s also now jostling with legal troubles after being sued by Google over design theft allegations. It adds to accusations of sexual harassment by a former engineer, widespread defections by customers upset over Chief Executive Travis Kalanick’s handling of the company and an apology by Kalanick after a video showed him getting into an argument with an Uber driver about driver wages.

“Do you think they know what you guys are up to or, I mean, what’s going on?” a camera operator asked.