REUTERS/Angus Mordant/File Photo Acquire Licensing RightsNEW YORK, Sept 19 (Reuters) - A federal judge on Tuesday said DoorDash (DASH.N), Grubhub (TKWY.AS) and Uber Eats (UBER.N) can sue New York City over a law capping how much they can charge restaurants for delivering meals.
"Good news from New York City," CEO of Grubhub's parent company Just Eat Takeaway, Jitse Groen, wrote on X, formerly known as Twitter.
Woods said the plaintiffs adequately alleged that the law unconstitutionally interfered with their ability to collect higher commissions under their contracts with restaurants.
The plaintiffs have said commission caps would necessitate higher delivery fees, resulting in higher prices for consumers and less revenue for restaurants.
The case is DoorDash Inc et al v City of New York, U.S. District Court, District of New York, No 21-07564.
Persons:
Angus Mordant, DoorDash, Gregory Woods, Nicholas Paolucci, Grubhub, Jitse Groen, Woods, Jonathan Stempel, Diana Mandiá, Mark Potter, Timothy Gardner
Organizations:
REUTERS, New, Constitution, New York, City Council, Council, Twitter, Thomson
Locations:
Manhattan , New York, U.S, New York City, Manhattan, New York, Amsterdam, San Francisco, City of New York, Gdansk