Pennsylvania regulators are not happy about Uber’s illegal operations in their state.
The state’s Public Utilities Commission decided to fine the ride-hailing company for $11.4 million after operating without proper approval for six months in 2014, the Commission said on Thursday. The Commission voted 3-2 in favor of the penalty, which is much lower than the $50 million fine recommended by two judges last year.
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“We find that a civil penalty of this size is necessary to deter Uber and other members of this industry from future violations of the Public Utility Code and the laws of this Commonwealth,” wrote one of the commissioners in the decision.
Uber continued to operate for a month after receiving a cease-and-desist.
The two commissioners who voted against the fine argued that the penalty is excessively large, especially in comparison to the Commission’s previous record of a $1.8 million fine imposed on an electricity supplier for what was determined to be deceptive marketing and billing practices.
Operating without proper permits isn’t a first for Uber. The multi-billion dollar-valued company has previously come under fire from several states and cities, including Nevada, Massachusetts, and Portland, Oregon.
Uber plans to appeal the decision. An Uber spokesperson responded to Fortune with the following statement:
We are disappointed by today’s decision and shocked by the amount of the civil penalty, which is 45 times higher than the penalty paid by Uber’s competitor for the same activity. As two Commissioners confirmed today, there was no actual harm to Pennsylvanians, and the Commission subsequently approved the same operations. We look forward to making our case to the Commonwealth Court. In the meantime, we will continue to work in good faith with the Commission.
