Wiggy's Liquor, August 2010, in Austin.
Wiggy's Liquor, August 2010, in Austin. Michael Connell

Wal-Mart filed a lawsuit in an Austin federal court on Thursday challenging a Texas law that forbids the company from owning and operating liquor stores in the state.

The lawsuit says the Texas Alcoholic Beverage Commission code prevents Wal-Mart from obtaining a permit to sell hard alcohol because it is a publicly traded corporation.

Wal-Mart spokesman Lorenzo Lopez said the company is seeking a โ€œfair and level playing field so we can offer our customers a full assortment of adult beverages.โ€

โ€œThis is counter to Texasโ€™ belief in free enterprise and fair competition, limits our customerโ€™s choice and keeps the price of spirits artificially high, all of which harm Texas consumers,โ€ Lopez said in an email.

Wal-Mart, which holds licenses to sell beer and wine at 546 locations in Texas, is also challenging a provision of the law that would prevent the company from owning more than five liquor stores if the company did become eligible for a liquor license.

Ryan McCrimmon was a reporting intern for The Texas Tribune in 2015. A graduate of Northwestern University, Ryan previously covered national politics and foreign affairs for the Medill News Service in...