DoorDash Seeks a Dismissal in Uber Anticompetitive Practices Lawsuit

DoorDash has asked a California Superior Court judge to dismiss a lawsuit filed by Uber that accuses the food delivery company of stifling competition by intimidating restaurant owners into exclusive deals.

Uber filed its lawsuit against DoorDash in February. The ride-sharing giant alleged DoorDash, which holds the largest share of the food delivery market in the U.S., threatens restaurants with multimillion-dollar penalties or the removal or demotion of the businesses’ position on the DoorDash app.

DoorDash argues in its motion that Uber’s claim lacks merit on all fronts. DoorDash said, “the lawsuit is nothing more than a cynical and calculated scare tactic from a frustrated competitor seeking to avoid real competition. It’s disappointing behavior from a company once known for competing on the merits of its products and innovation.”

A hearing has been set for July 11 in California Superior Court in San Francisco County.

In its post, DoorDash added that it will “vigorously” defend itself, and positioned the company as one that “competes fiercely yet fairly to deliver exceptional value to merchants.”

Uber responded to the DoorDash request in a statement.

“It seems like the team at DoorDash is having a hard time understanding the content of our Complaint,” reads the emailed statement from Uber. “When restaurants are forced to choose between unfair terms or retaliation, that’s not competition — it’s coercion. Uber will continue to stand up for merchants and for a level playing field. We look forward to presenting the facts in court.”

Uber requested a jury trial in its original complaint. The company has not specified the amount of damages it is seeking.

The Law

Anticompetitive Practices

Anticompetitive practices are business behaviors that restrict competition in a market, potentially leading to higher prices, reduced consumer choice, and limited innovation. These practices are often illegal and violate antitrust laws in many countries.

Uber alleged DoorDash has made it harder and costly for restaurants to sign up with more than one delivery service. California's antitrust law, primarily the Cartwright Act and the Unfair Competition Law (UCL), prohibits anticompetitive practices like price-fixing, market allocation, and group boycotts. These laws aim to ensure fair competition, protect consumers, and prevent businesses from engaging in unfair trade practices that harm competition.

This law, outlined in the preservation and regulation of competition or California Business and Professions Code § 16600-17365, prohibits "unlawful, unfair, or fraudulent business acts or practices". It also prohibits unfair, deceptive, untrue, or misleading advertising.   

Unfair Practices Act for Consumers

The Unfair Practices Act (UPA) in California, also known as the California Unfair Competition Law (UCL) prohibits unfair business practices and deceptive advertising. It covers any unlawful, unfair, or fraudulent business act or practice. The California's Consumers Legal Remedies Act (CLRA) is a set of statutes that protects consumers from false advertising, fraud, and other unfair business practices. This law allows consumers to bring individual or class action lawsuits to recover damages and to stop the unlawful practices.