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Costco denied rehearing on beer, wine pricing suit

Tue Apr 1, 2008 11:30pm IST
 
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SAN FRANCISCO, April 1 (Reuters) - A U.S. court declined on Tuesday a request by Costco Wholesale Corp (COST.O: Quote, Profile, Research) to reconsider a decision backing Washington state rules controlling pricing and discounts on beer and wine.

The three-judge panel of the U.S. 9th Circuit Court of Appeals ruled in January that most Washington state regulations challenged by Costco, the largest U.S. warehouse club, are constitutional.

Costco, which can use its buying power to sell beer and wine at low prices to its club member customers, had argued that the regulations restricted competition.

The panel's amended opinion noted the three judges unanimously voted to deny requests to rehear Issaquah, Washington-based Costco's lawsuit. The opinion also noted the full circuit court bench would not rehear the suit.

A Costco representative was not immediately available for comment. (Reporting by Jim Christie, editing by Gerald E. McCormick)

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