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On Monday, Uber Technologies Inc. (NYSE:UBER) shares dropped 2.4% in midday trade following the suspension of the company’s licenses to rent bikes and scooters. Los Angeles suspended the license temporarily after months of a dispute regarding a contentious data-sharing policy.

Uber to sue city fo0r improper suspension

Uber’s subsidiary Jump has until Friday to appeal or leave the city, according to the Los Angeles Transportation Department. However, users can still rent the electric bikes and red scooters through the Jump app. Uber has threatened to sue the city for what it termed as “patently unfair and improper” treatment. The company has also questioned the rationality of the “administrative review process” created last month by the city.

The bone of contention has been the policy requiring the ride-sharing company to share real-time data on trips made in the city. Information required includes the starting point of a trip, travel time as well as endpoint. Uber, on the other hand, has opposed the rule saying that that is government surveillance. For months Uber has argued its case of resisting the rule with backing from data privacy organizations that it is a form of government surveillance.

The new policy meant to check the cap on the number of cars in specific areas

Los Angeles Transportation Department spokeswoman Connie Llanos said that all companies should follow the rules as prescribed by the city. She added that the city is ready to work with the company on getting it into compliance.

Officials indicated that the policy is necessary to determine the companies flouting the rules of the permit program. Thus includes a limit on the number of cars as well as the ban on riding in specific areas. The city has also argued that they cannot trust the companies to regulate themselves.

There are eight companies permitted to operate in Los Angeles, which include Lyft (NASDAQ:LYFT), Bird, Lime, and Uber. The companies operate a fleet of around 32,000 bikes and scooters in the city with close to 1 million trips each month. The conflict shows the lack of trust between the ride-hailing companies and cities.