McDonald's Facing Tax, Competition Probe In Brazil

Law360, New York (March 4, 2016, 1:46 PM EST) -- Federal prosecutors in Brazil have launched a criminal investigation into possible tax law violations and unfair competition at the Latin American owner of McDonald's franchises, according to a union that called for the probe.

The Public Prosecution Service in Sao Paulo initiated an investigation into Arcos Dorados Holdings on Thursday, according to a statement by Brazil's General Workers' Union, or UGT, which filed a petition in August 2015 laying out its concerns.

The probe focuses on whether Arcos Dorados, which holds the right to operate McDonald's franchises in the country, unfairly reduced its tax burdens and wielded excessive control over the...

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