Exclusive | Mamdani faces new lawsuit over NYC-run grocery stores alleging unfair competition
The Mamdani administration is facing a new federal lawsuit alleging that its controversial plan to open taxpayer-subsidized grocery stores in the five boroughs violates antitrust laws, The Post has learned.The National Supermarket Association and two of its members – City Fresh Market in Harlem and C-Town Supermarket in the Bronx – are filing the suit in the Southern District of New York as soon as Tuesday evening, the association’s president Anthony Peña told The Post.He pointed to millions of dollars in city subsidies to Mamdani’s five proposed publicly run grocery stores as evidence of unfair competition.“We are arguing that everyone has to be able to access these subsidies,” Peña said. “It’s not about us being afraid of competition.We are against unfair competition.” His group, which represents 450 independent grocery stores in New York City, is filing the complaint with the America First Policy Institute, a conservative nonprofit chaired by Larry Kudlow, President Trump’s former top economic advisor.The suit will mark the second major legal effort against the city over Mayor Zohran Mamdani’s plan to open five public supermarkets in low-income neighborhoods.
Under his plan, the stores would not pay rent and would sell key items for at least 30% less than neighboring shops, including small bodegas.In August, the Multicultural Business Coalition, which is comprised of 50 chambers of commerce representing ethnically diverse businesses in New York City, filed two lawsuits in state court alleging that business owners’ civil rights would be violated if the municipal stores are allowed to open. City Fresh Market, located at 125 E.116th St., is only about a block away from one of the proposed municipal stores.
Mamdani wants to set up a 9,000-square-foot shop inside La Marqueta at Park Avenue and E.115th Street for an eye-watering $30 million in taxpayer money.“Independent supermarkets have invested in our neighborhoods, created jobs, pa...