Travelers walk past a sign pointing toward the Uber rideshare vehicle pickup area at Los Angeles International Airport (LAX) on February 8, 2023 in Los Angeles, California.
Mario Tama | Getty Images
The Federal Trade Commission on Monday suedUber, accusing the ride-hailing and delivery company of deceptive billing and cancellation practices tied to its subscription service.
The agency claims Uber violated the FTC Act and the Restore Online Shoppers’ Confidence Act by providing misleading information about its Uber One subscription service, failing to provide a simple way for users to cancel their membership, and charging them without their consent.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chair Andrew Ferguson said in a statement. “The Trump-Vance FTC is fighting back on behalf of the American people.”
Uber spokesperson Noah Edwardsen said in a statement that the company is “disappointed” by the FTC’s complaint, but that it’s confident the courts will rule in its favor.
“Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” Edwardsen said. “Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less.”
Uber One, launched in 2021, costs $9.99 a month or $96 a year and offers perks like fee-free delivery and discounts on some ride bookings, delivery and pickup orders.
In its complaint, the FTC argues that Uber advertises its subscription as offering “savings of $25 a month” without calculating the monthly cost of its membership. It also accuses Uber of charging consumers before their billing date.
When users try to cancel their Uber One subscription, Uber makes it “extremely difficult,” while some users are told to contact customer service representatives to proceed with their cancellation, but are given no way to contact them, the FTC alleged. Some users claim that Uber charged them for another billing cycle after they cancelled their Uber One membership, the agency said in its complaint.
The complaint marks the first FTC action against a major tech company since President Donald Trump began his second term in January. The FTC has several ongoing lawsuits against tech’s megacap companies, including Meta, Google and Amazon. Some cases were brought during President Joe Biden’s presidency, but Trump’s FTC was aggressive during his first term, most notably going after Meta.
Ferguson told CNBC last month that the agency will continue to closely scrutinize major tech companies.
“I’ve said since day one Big Tech is one of the main priorities of the Trump-Vance FTC,” Ferguson said. “It’s one of the reasons the president appointed me to this position.”
Uber and CEO Dara Khosrowshahi each reportedly donated $1 million to President Trump’s inaugural fund, joining a lengthy roster of tech companies and executives attempting to cozy up to the incoming administration.
Khosrowshahi followed that up in January in an interview at the Wall Street Journal’s Journal House in Davos.
“We want to engage with every government we are a part of,” Khosrowshahi said, adding that a “diversity of voices” in government can be a positive, the Journal reported.
Perplexity AI is in late-stage talks to raise $500 million at a $14 billion valuation, a source familiar with the situation confirmed to CNBC Monday.
Accel, the Palo Alto-based venture capital firm, will lead the round, according to the source, who spoke anonymously because the round is not yet finalized. The Wall Street Journal first reported on the late-stage numbers.
The funding is on the lower end of Perplexity’s planned raise, which CNBC reported in March. During those early-stage talks, Perplexity was looking to raise between $500 million and $1 billion in funding at an $18 billion post-money valuation, per a source familiar.
Perplexity has just under $100 million in annual recurring revenue, or ARR, the source told CNBC in March.
Perplexity has been in the middle of the generative AI boom that began in late 2022 with the launch of OpenAI’s ChatGPT, and it’s betting big on its upcoming AI agent web browser, called Comet. But Perplexity faces increasing competition in the AI search market.
In March, Anthropic launched its web search product, allowing its chatbot Claude to display real-time search results to a subset of users.
Last fall, OpenAI launched a search feature within ChatGPT, its viral chatbot, that positioned it to better compete with Perplexity, as well as leading search engines such as Google and Microsoft‘s Bing.
Google has released AI Overviews within its search product as well, though it sparked controversy over high-profile errors soon after its release.
Apple CEO Tim Cook, center, watches during the inauguration ceremonies for President Donald Trump, right, and Vice President JD Vance, left, in the rotunda of the U.S. Capitol in Washington, Jan. 20, 2025.
Wall Street and Apple investors cheered the pause on Chinese tariffs. Apple stock was up 6% in trading on Monday, versus 3% for the Nasdaq.
“I spoke to Tim Cook this morning, and he’s going to, I think, even up his numbers,” Trump said in the Oval Office. “$500 billion, he’s going to be building a lot of plants in the United States for Apple. And we look forward to that.”
Apple previously said in February it would spend $500 billion to expand many of its operations in the U.S., including assembling AI servers in Houston.
Any cooling of a U.S.-China trade war is expected to boost Apple, which does the majority of its device production in the country, and also counts the region as its third-largest by sales.
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Still, it’s not clear how much Monday’s announcement immediately helped Apple.
In April, most of Apple’s most important products, such as smartphones and computers, received exemptions on some of the highest 145% tariffs, but there are still 30% tariffs on Chinese imports even after Sunday’s deal. Apple still faces 10% tariffs in some of its secondary production locations, such as India and Vietnam.
The Trump administration wants Apple to bring device production, including iPhone manufacturing, to the United States, a move that many experts believe would be unlikely and expensive.
Earlier this month, Cook told investors about the company’s tariff strategy on an earnings call. He said that Apple is currently sourcing American-bound products from production locations in Vietnam and India, but didn’t want to speculate beyond June, calling the situation “difficult to predict.”
HANGZHOU, CHINA – JUNE 3, 2024 – The NVIDIA logo and the Apple logo are pictured in Hangzhou city, Zhejiang province, China, June 6, 2024. On June 5, Eastern time, Nvidia’s stock market value exceeded $3 trillion, officially surpassing Apple’s market value and becoming the world’s second largest technology giant by market value. It is worth noting that in just over 3 months, Nvidia’s market value soared from $2 trillion to $3 trillion. (Photo credit should read CFOTO/Future Publishing via Getty Images)
Cfoto | Future Publishing | Getty Images
Global technology and chip stocks rallied on Monday after the U.S. and China agreed to pause most tariffs on each other’s goods.
Technology stocks — such as semiconductor firms and smartphone makers — have been hit hard as trade tensions between the world’s two largest economies threatened to disrupt supply chains and hurt some of the biggest U.S. businesses.
But investors breathed a sigh of relief after talks between the U.S. and China over the weekend yielded a temporary pause in “reciprocal” tariffs.
In the U.S., Nvidia, which still faces a number of restrictions on the chips it is allowed to ship to China, was around 4% higher in premarket trade, while AMD was up 5%. Broadcom was also around 5% higher, along with Qualcomm.
Other companies in the semiconductor supply chain also jumped. Marvell, which last week postponed a previously scheduled investor day due to macroeconomic uncertainty, surged 7.5% in premarket trade.
Taiwan Semiconductor Manufacturing Co., the world’s largest chipmaker, saw its U.S.-listed shares jump around 4% in the premarket. TSMC’s Taiwan-listed stock closed before the tariff announcement.
In Europe, ASML, a supplier of critical machinery required to manufacture the most advanced chips, rallied 4.5% in early trade. Infineon was also sharply higher.
Semiconductors and some electronics received an exemption from President Donald Trump’s reciprocal tariffs last month, but the U.S. signaled the reprieve was temporary and that these products could still be in line for special duties.
Investors have been concerned about the impact on major tech stocks, especially those with exposure to China such as Apple and Amazon, whose shares have been under pressure this year.
Amazon was up more than 8% in premarket trade Monday. Many sellers on Amazon rely on Chinese products.
U.S.-listed Chinese tech stocks also surged. Chinese e-commerce giants Alibaba and JD.com were higher, alongside internet firm Baidu.
“With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday.
“This morning is a huge win for the bulls and a best case scenario post this weekend in our view.”
