PUC judges recommend $50 million fine for Uber

Pennsylvania Public Utilities Commission judges recommended fining Uber nearly $50 million for operating without prior approval, ignoring discovery orders and other violations — the latest in a string of regulatory thumpings of the popular app-based car service.

The order from the PUC's administrative law judges came down Tuesday afternoon. It determined that Uber violated the Public Utilities Code, but the fine is not yet final because it is subject to comment from the parties and must be accepted or denied by the agency's commissioners.

“We're extremely disappointed in today's recommendation,” said Taylor Bennett, a spokesman for Uber. “We look forward to presenting our case and coming to a reasonable resolution consistent with precedent set by the commission in similar rulings.”

The agency's Bureau of Investigation and Enforcement brought the case against Uber in summer 2014, after its officials discovered the car service still was operating in Pittsburgh despite orders to cease. Uber competitor Lyft both were ordered to stop operating. Later that year, both companies received conditional approval, then secured new, conditional, two-year permits during the winter.

Lyft settled with the PUC for $250,000 earlier this year.

Uber's $49.9 million fine includes $72,500 for violating discovery orders. The Bureau of Investigations and Enforcement and Uber have 20 days to file statements about the decisions, then 10 days to reply to them. Those filings will be reviewed by PUC staff, who will send their analysis to the five members of the PUC who can accept, modify or reject the decision.

Uber has tussled with regulators in other states — California fined it $7.3 million this summer, and a class-action lawsuit is scheduled there for next summer challenging how Uber categorizes drivers as independent contractors.

Lawmakers still are mulling how to codify companies like Uber — called “transportation network companies” — into state law before the two-year permits expire.

Throughout its case, Uber has maintained it had proper insurance and background checks for its drivers to provide a much-needed service in Western Pennsylvania. It then expanded to other parts of the state.

“We are not unmindful of the public benefits offered by ridesharing services and transportation network companies,” wrote Judge Mary D. Long and Judge Jeffrey A. Watson in the order Tuesday. “However, it is inescapable that Uber chose to launch its ridesharing service and then continued to evade Commission oversight. ...”

Melissa Daniels is a staff writer for Trib Total Media. She can be reached at 412-380-8511 or mdaniels@tribweb.com.