A PYMNTS Company

US: NYC Council member calls for antitrust probe into GrubHub

By  |  July 14, 2019

A New York City council member wants an antitrust investigation into food delivery platform GrubHub. The news, reported by the New York Post, comes after another report that the platform created tens of thousands of fake websites for restaurants in order to drive up commissions.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In addition, New York’s Liquor Authority is working on new rules that will eat away at the ability of services like GrubHub to charge upwards of 10% for online ordering and delivery.

    Mark Gjonaj, who heads the city council’s Committee on Small Business, wants New York Attorney Letitia James to open the investigation. In a letter dated July 2, he wrote says that it might be time for James to look at the terms of the 2013 settlement agreement that allowed GrubHub to acquire then-competitor Seamless.

    Gjonaj went on to say that he does “believe that GrubHub’s outsized market share and heavy-handed tactics could lead to artificially reduced competition,” resulting in higher commissions paid by small businesses.

    Full Content: New York Post

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.