California, Uber in legal showdown over self-driving cars

Uber is riding its self-driving cars into a legal showdown with California regulators.

The ride-hailing company is refusing to obey demands by the state's Department of Motor Vehicles that it immediately stop picking up San Francisco passengers in self-driving cars.

Hours after Uber launched a self-driving service this morning with a handful of Volvo luxury SUVs, the DMV sent the company a letter saying the move was illegal because the cars did not have a special permit the department requires for putting autonomous vehicles on public roads.

As of Wednesday night, the Volvos distinctive in look with sensors protruding from their tops were still roaming San Francisco's streets. The company did not respond to a request for comment about the state's legal threat.
 

"If Uber does not confirm immediately that it will stop its launch and seek a testing permit, DMV will initiate legal action," DMV Chief Counsel Brian Soublet wrote the company. He referenced the possibility of taking Uber to court.

Uber knew about the DMV's permit requirement but argues that its cars do not meet the state's definition of an "autonomous vehicle" because they need a person behind the wheel to monitor and intervene if needed.

Parsing the definition of an autonomous vehicle is in line with Uber's history of testing legal boundaries. During its meteoric rise into a multibillion dollar company, Uber has argued with authorities in California and around the world about issues including driver criminal background checks and whether those drivers should be treated as contractors ineligible for employee benefits.

As the two sides planned to meet today, both seemed dug into opposing positions.

The argument centers around whether the cars tricked out with sensors so they can steer, accelerate and brake, and even decide to change lanes are, legally speaking, "autonomous vehicles."

The company argues that its cars aren't covered by the permit requirement, which says an "autonomous vehicle" requires a permit if it can drive itself "without the active physical control or monitoring of a natural person.