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June 20, 2006
(Olympia) – The State Attorney General's Office today filed
an appeal of U.S. District Court Judge Marsha Pechman's ruling in the Costco lawsuit,
which held certain parts of the state's regulatory system for beer and wine in violation of
the federal antitrust Sherman Act.
The appeal seeks review in the Ninth U.S. Circuit Court of Appeals. The appeal process could
take from 18 to 24 months. The appeal asserts Washington's regulatory scheme for beer and
wine does not violate the antitrust laws of the Sherman Act. It also asserts the State's
statutory and regulatory control of the sale of beer and wine is a valid exercise of the
State's right granted under the 21st Amendment to the U.S. Constitution.
Judge Pechman ruled in April that certain elements of the state's three-tier system violate
the federal antitrust Sherman Act. These elements are minimum 10 percent markups, price
posting and holding, a ban on credit purchases, uniform delivered pricing and a ban on volume
discounts.
Following the ruling, the State asked the judge to stay her decision enjoining the State
from enforcing these elements while an appeal of the ruling was considered. She has not
decided this motion.
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