U.S District Judge Lewis Kaplan in Manhattan said an antitrust lawsuit must be brought against food delivery platforms Grubhub, Uber Eats, and Postmates by diners—who accuse them of driving up menu prices by exploiting their control in meal deliveries during the COVID-19 pandemic.
The no-price competition clause
Kaplan said the “no-price competition clauses” restricted restaurants from charging low prices for dining in or ordering takeout and left them with the only option of charging more from their customers.
He also said that diners reasonably alleged the clauses put in place by Grubhub and Uber Eats' were made in a fashion that didn’t allow restaurants to use other platforms.
Response from defendants
GrubHub expressed its disappointment with the decision and is ready to defend its dining-related services. Meanwhile, Uber Technologies, which owns Uber Eats and Postmates did not respond. The lawyers of diners said they were pleased with the decision.