The council in New Zealand's biggest city has cancelled the licence for Beam to operate e-scooters there, according to the New Zealand Herald.
Beam Mobility is one of the two companies operating the vehicles in the ACT.
It has admitted running more scooters in some places than it had permission to do - but said it was a mistake and not a scam to deprive governments of money.
E-scooters are licenced by the ACT and governments in other jurisdictions in return for a fee to the public purse.
The ACT government has previously said that it was investigating the situation with Beam, but it is not clear if that investigation has turned into tougher action now that Auckland has been so decisive.
The New Zealand Herald reported that "Auckland Council has cancelled Beam's e-scooter licence in Auckland and given it until midnight to deactivate its fleet.
"The move follows the council's investigation into a whistleblower's allegation that the Singapore-owned firm put 300 more e-scooters on Auckland street beyond its operating limit of 1200 (or 1400 including seated models) and manipulated the software used by the council to keep tabs on e-scooter numbers.
"The council said it will now refer the matter to the police for further investigation."
Beam has a licence for 950 e-scooters in Canberra. A year ago, it announced that 150 of them would be sit-down ones.
It is not known how many - if any - e-scooters Beam has on Canberra streets beyond its permitted number.
The ACT government said it had received information about Beam Mobility earlier in August. It was investigating the claims and "liaising with other councils and the operator".
Beam's rival in Canberra, Neuron, called Beam's behaviour "reprehensible".
"This kind of deception is a terrible breach of trust and ethics and is totally reprehensible; it does not in any way reflect how the wider industry operates," a Neuron statement said.
Beam Mobility said it would appoint an independent auditor to review its operations. It said it was prepared to reach settlements with governments and councils which had permitted its scooters in their jurisdictions.
Its chief executive Alan Jiang said that the understatement of its scooter numbers was a mistake. His statement said that the company was "deeply apologetic" for going over vehicle caps but it was not intentional.
"We understand the importance of our social licence in our key markets and recognise that we need to do better in the future to meet the high standards our partners set for us," Mr Jiang said.
"We emphatically reject any suggestion that this was a scheme to deprive councils of revenue."
Beam charges riders $1 to unlock a scooter and then 45 cents for every minute of the ride. Neuron scooters cost $1 to unlock and 38 cents per minute. Three-day, weekly and monthly passes are also available for regular users.
The government-issued permits for the scheme are set to expire later in 2024.
"Prior to issuing any long-term permits (i.e., up to three years) the ACT government will undertake a procurement process to test the market," a government spokeswoman said.
