Costco Wholesale Corp. is challenging the Washington State Liquor Control Board's regulation that requires both distributors and producers to mark up beer and wine prices by at least 10%, saying the rules prevent it from negotiating prices with out-of-state distributors. "If you look at all the other states that don't have these kinds of antiquated laws, you'll find the selection is just fine and that consumers have lots of choices and much better prices," Costco CEO Jim Sinegal said.

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