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DoorDash, Grubhub, Uber Eats Sue New York City Over Cap on Delivery Fees

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DoorDash and two other delivery service companies are suing New York City for capping how much they can charge restaurants. The city in May 2020 enacted caps presented as temporary on the rate that third-party platforms like DoorDash could charge restaurants. The law was slated to expire 90 days after on-site dining was allowed again. But the price controls were extended three times. The third was the passage of a law that would make the caps permanent. “This now-indefinite legislation bears no relationship to any public-health emergency, and qualifies as nothing more than unconstitutional, harmful, and unnecessary government overreach that should be struck down. 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,” the service platforms said in their lawsuit, which was filed late Thursday in federal court …

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