Grubhub Inc. and Uber
Eats are suing New York City over its law permanently capping the amount of commissions the apps can charge restaurants to use their services, the latest move in a growing clash between the platforms and local regulators. The three largest food-delivery companies filed the suit in federal court in New York late Thursday, contending that the fee cap is harmful and constitutes government overreach. The limit on fees has cost the companies hundreds of millions of dollars combined through July, they said in the suit.
A permanent cap will likely require them to rewrite contracts with restaurants, reduce marketing in the city and raise fees for consumers, the companies said in the complaint. The companies are seeking an injunction that would prevent New York from enforcing the fee-cap ordinance adopted last month, unspecified monetary damages and a jury trial. An expanded version of this report appears on WSJ.com. Also popular on WSJ.com: Biden boosts vaccine requirements for large employers, federal workers to combat COVID-19. Amazon dangles free bachelor’s degrees as new perk in fight for U.S. workers.