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Each Waymo is equipped with multiple cameras (potentially LPR), LIDAR, etc. The car knows when the vehicles around it are breaking traffic laws and can provide photographic/video evidence of it. Imagine if Waymo cars started reporting violators to the police, and if the police started accepting those reports. Someday they might.

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Isn't it too dystopian to have cars follow you around and report you to authorities? I can easily imagine some bad scenarios.

Yes it could potentially be very dystopian for human drivers. That doesn't mean it won't happen. Police departments could make a lot of extra money from the additional traffic tickets; there is a financial incentive for them to do this.

Making money from tickets is supporting the wrong behavior of trying to find excuses to ticket you for anything to get extra money - this is often leading to cops looking for cheap ways to get the extra cash where they can get it easily, instead of doing more important work where their chance to ticket you is lower even if more important for safety.

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