The judge said the plaintiffs adequately alleged that the law violates the U.S. Constitution and New York state constitution by depriving them the right to contract with restaurants, forcing them to operate in the city at a loss
, Grubhub and Uber Eats can sue New York City over a law capping how much they can charge restaurants for delivering meals.
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. Grubhub welcomed the decision, and called on the City Council to give restaurant owners more flexibility to choose which services they want and how much to pay.
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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