Costco Challenges Washington's Alcohol Regulations

Costco Wholesale Corp. thinks Washington state is drunk with power. In a case before the 9th Circuit, the retailer claims the state's alcohol regulations are overly restrictive and anti-competitive.

The feud began in 2003 when John Sullivan, Costco's deputy general counsel for litigation, started researching why the company was paying significantly more to sell alcohol in Washington than it was in any other state.

"According to Parker, the antitrust laws cannot prevent a state from imposing any regulations it wants on commerce," says Garret Rasmussen, partner at Orrick, Herrington

& Sutcliffe.

Technology Editor

Keith Ecker

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