Third-party delivery services DoorDash, Uber and GrubHub are suing New York City over fee caps, according to a Fox Business report.
The fservices filed the suit in federal court Thursday claiming the city's permanent cap on the amount of commissions the companies can charge restaurants is harmful and constitutes "government overreach."
The city placed the cap during the pandemic to protect restaurants already devastated by the surge in COVID-19 and extended fee limits even as indoor dining reopened. The companies are suing for unspecified monetary damages and requesting a jury trial, according to Fox.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, claims "the ordinance is unconstitutional because, among other things, it interferes with freely negotiated contracts between platforms and restaurants by changing and dictating the economic terms on which a dynamic industry operates," according to a Washington Post report.
The companies also filed for an injunction preventing the city from enforcing the fee caps, which were adopted in August.
Last month, the city of Chicago sued DoorDash and GrubHub, claiming the company had "deceptive and unfair" business practices.
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