Supermarkets are suing NYC over Mamdani's city-run grocery stores' 'predatory pricing scheme'
Mayor Zohran Mamdani wants to open five city-run grocery stores in NYC. Local businesses say they can't compete.
New York City Mayor Zohran Mamdani's plan to launch city-run grocery stores is facing legal challenges. The lawsuit, filed in federal court on Wednesday, claims the city stores violate US antitrust laws by offering a 30% discount on core goods compared to private retailers. The National Supermarket Association, along with other private grocers, is leading the legal action.
The stores, set to open by 2029, will be located across all five boroughs and will receive government funding, including rent and property tax forgiveness. Mamdani's grocery plan aims to provide affordable groceries, but local businesses argue they cannot compete with the lower prices. The lawsuit demands that the city's discount on core goods be ruled unlawful as it constitutes predatory pricing, a practice prohibited by antitrust laws. The city is accepting applications for operators of the supermarkets, with a deadline in October.
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