By Islam El-Sakka
Bipartisan legislation introduced in the U.S. House would prohibit third-party food delivery services from listing restaurants without explicit permission, while DoorDash's proposed $17 billion acquisition of Instacart faces antitrust scrutiny.
Legislation Targets Unauthorized Listings
The PROTECT Small Restaurants Act, introduced by Rep. Susie Lee (D-Nev.), would require platforms like GrubHub and DoorDash to obtain consent before displaying a restaurant. Unauthorized vendors must be removed within 10 calendar days of notification, and unapproved listings would be classified as unfair or deceptive trade practices under Federal Trade Commission jurisdiction.
Lawmaker Highlights Small Business Impact
Lee said independent restaurants already struggle with thin profit margins and decreased tourism, and unauthorized listings harm their reputation and customer acquisition. She emphasized restaurants deserve peace of mind from this harmful practice.
Local Precedents Exist, Federal Rules Absent
Several municipalities and states, including California and New York City, have enacted local restrictions against unauthorized listings, but federal regulations have not existed until now.
DoorDash-Instacart Merger Announced
Amid the legislative push, DoorDash announced a $17 billion agreement to acquire Instacart at $65 per share, combining DoorDash's logistics network with Instacart's grocery fulfillment technology. The deal is projected to close in late 2027 or early 2028, pending shareholder and regulatory approval in the U.S., Canada, and Israel.
Antitrust Advocates Urge Block
The American Economic Liberties Project urged regulators to block the transaction, warning the combined entity would control nearly 60 percent of the third-party grocery delivery market. Senior Legal Counsel Lee Hepner said the merger represents data-driven abuse exploiting power asymmetries to squeeze workers and drain consumers.
Executives Defend Merger Benefits
DoorDash CEO Tony Xu said the merger would give stores of every size better tools for grocery delivery, citing the complexity of picking ripe produce and keeping items frozen. Instacart CEO Chris Rogers said the combination would expand capabilities for retail partners and create new opportunities.
