Seamless and Grubhub Agree Not to Monopolize Online Food Ordering Market, New York State Attorney General Allows Them to Merge

Categories: Technology

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Photo Credit: alles banane via Compfight cc
Two months after announcing their merger, Seamless and GrubHub are finally getting the greenlight from New York state. But it comes at a price: To make sure the takeout barons don't monopolize the "food technology" industry (which is increasingly a thing), Seamless must end its exclusivity agreements with the hundreds of restaurants in serves in New York.

Now that two of the largest online takeout services are joining forces, there was the real chance that the new company would box out any competitors.

The Attorney General's Office is compelling Seamless to end its exclusivity agreements with Manhattan with 45 days of the merger. Up until now, any restaurant that used Seamless for its online customers had to promise not to use any other service but Seamless. The new company is also forbidden to enter new exclusivity agreements for at least 18 months after the merger.

Attorney General Eric Schneiderman said in a statement that the settlement clears the way for a competitive market. "It allows consumers and restaurants the freedom to do business with the website or app of their choice," notes Schneiderman.

The two takeout behemoths announced their plans to merge back in May. No word yet on what the new company's name will be. SeamHub? GrubLess? GrubSeam? Ew.

Send your story tips to the author, Raillan Brooks.


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