The growing clash between online food delivery platforms and local regulators in the US has taken a new turn. The three largest food delivery companies, Grubhub, DoorDash, and Uber Eats, have decided to sue New York City for passing legislation that would permanently impose limits on the commissions they can charge from restaurants. To prevent the implementation of the fee-cap ordinance adopted last month, the companies filed a suit late Thursday, along with demands for monetary damages and a jury trial.

The New York City legislation caps commissions at 15% for delivery plus an additional 5% for marketing and other fees—from a previous cumulative maximum fee of 30%.

Online food delivery platforms have reported rapid growth during the pandemic; however, they claim that since most restaurants have resumed dine-in service, the legislation is not connected to the public health emergency, and represents government overreach and interference. The companies claim these caps have cost them “hundreds of millions of dollars” collectively.

The platforms also allege the new cap requires drawing up new contracts with restaurant partners, reducing marketing, and hiking user fees. New York state officials, however, have not yet made any official comment on the matter.  The delivery platforms filed a similar suit in San Fransico in June 2021.