Uber might have to stop offering its services in California soon. A California Public Utilities Commission (CPUC) judge, Karen Clopton, charged Uber with a $7.3 million fine just yesterday.
The fine stems from allegations that the company failed to provide details on its operations. The company was then given 30 days to comply and pay the fine, or risk suspension of its operating license.
Independent UK also reports that the judge's ruling was also because of Uber's failure to comply with laws that aim to provide fair rides for users - "regardless of who they are or where they live."
Uber stated that the company intends to appeal the ruling, and called it "deeply disappointing." The appeal, if granted, would help the company evade the likelihood of getting banned.
However, Uber's attempt to fight back against the ruling "threatens to undermine legislation" that has been used as a pattern by other US states with regard to managing troublesome services in terms of transportation.
California was the first state to allow "ride-sharing regulations" back in 2013. The regulation allows taxi alternatives for users, and allowed anyone with a "qualified" car to ask customers for a fee for rides.
But the regulations also had some conditions such as: the companies offering $1 million insurance, criminal background checks, and reports on its activity, among many other safety measures.
Clopton also stated that Uber had violated this 2013 regulations. It claims that the company refused to give information and reports on who the drivers were actually catering to.
Constance Gordon, a CPUC spokeswoman, said to the LA Times, "They had a year to comply with these regulations, and didn't do it."
Uber spokeswoman Eva Behrend cited, "Uber has already provided substantial amounts of data to the California Public Utlities Commission, information we have provided elsewhere with no complaints."
The proposed ban will still hold as long as Uber has shown compliance to the rules and regulations of the state.
