(Bloomberg) -- DoorDash Inc., Grubhub Inc. and Uber Technologies Inc.’s Uber Eats sued New York City over its newly entrenched cap on the amount meal-delivery services can collect from restaurants.The companies say the 15% cap interferes with their right to freely negotiate contracts and will likely result in higher prices for consumers and lower earnings for restaurants and delivery drivers.The city’s ordinance is “nothing more than unconstitutional, harmful, and unnecessary government overreach that should be struck down,” the companies said in a complaint filed Thursday in Manhattan federal court.
New York City Council originally instituted the fee limit in May 2020 on a temporary basis. Councilors said it was necessary to protect restaurants struggling during the Covid pandemic from high commissions charged by the delivery apps. City Council made the cap permanent in August.
The city’s law department didn’t have an immediate response to the complaint.
The suit is DoorDash, Inc. et al v. City Of New York, 1:21-cv-07564, U.S. District Court, Southern District of New York, Manhattan.
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