A federal judge on Tuesday said DoorDash , Grubhub and Uber Eats can sue New York City over a law capping how much they can charge restaurants for delivering meals.
U.S. District Judge Gregory Woods in Manhattan said the plaintiffs adequately alleged that the law violates the U.S. Constitution and New York state constitution by depriving them of their right to contract with restaurants, and forcing them to operate in the city at a loss.
The city had said the law's main purpose was to prevent "social and economic devastation" that could result if excessive commissions forced restaurant owners to slash employment. Lawyers for the plaintiffs, which also operate Caviar, Seamless and Postmates, did not immediately respond to similar requests.
It made the caps permanent in August 2021, and the lawsuit seeking to overturn them was filed the next month. The lawsuit also seeks damages.
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