New York City agreed not to enforce a new law requiring food-delivery services to share customer information with restaurants while a legal challenge from DoorDash Inc. plays out in court.
On Monday, the city said in a filing in Manhattan federal court that it would put the law on hold until the suit DoorDash filed last month is resolved. The company said it was withdrawing its request for an order blocking enforcement of the law.
DoorDash claims the law, which requires delivery companies to share with requesting restaurants the names, phone numbers and email addresses of customers who’ve ordered their food, violates its customers’ privacy.
The measure is part of a package of bills aimed at regulating the food-delivery industry and shoring up the city’s restaurant industry. The pandemic created a boom in online food delivery at the same time that restaurants were forced to close their dining rooms and, in many cases, their doors. DoorDash, Grubhub Inc. and Uber Technologies Inc.’s Uber Eats have also sued over a 15% limit the city placed on commissions charged by delivery services.
The case is DoorDash Inc. et al v. City Of New York, 21-cv-07695, U.S. District Court, Southern District of New York (Manhattan).
More tech coverage from Fortune:
- Why Instacart’s new CEO is also launching a women’s health startup
- Beijing’s crackdown on teen gamers is about more than screen time
- She ran Bumble’s IPO while being treated for breast cancer. Now she’s becoming a CEO
- Commentary: Historically Black colleges can’t solve tech’s diversity problem alone
- James Dean may be resurrected for a new film, decades after he died
Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.