AUSTIN (KXAN) – Big box retailer Walmart filed a lawsuit against the State of Texas Thursday saying the Texas Alcoholic Beverage Commission’s rules discriminate against Walmart and other publicly traded companies by unfairly barring them from selling distilled spirits.

In the suit, Walmart argues that Texas laws only permit one person to own and operate five stores but a loophole allows blood relatives of a license holder to open five additional stores. That’s how companies like SPEC’S are able to have more than one location.

In the suit, Walmart argues the blood relative exception is unfair and hurts competition.

Local liquor stores have been worried about this happening for a while now.

“When I started it was pretty much all small business,” said Augustine Chukwura, owner of Austin’s Liquor. “But now you have these bigger companies coming in and it’s hard. They have a lot of money.”

Chukwura has owned the business for 17 years. He says roughly 75 percent of sales come from hard liquor.

“If you want to succeed you’re going to have to work hard, it’s not as easy as people think,” said Chukwura. “Given what I know from Walmart, eventually they’re going to get what they want, they’re big enough, they have the money.”

“I don’t think Walmart should be able allowed to sell hard liquor because they’ve monopolized everything else,” said customer Keith Williams. “And they are pushing these small businesses out of business.”

Walmart wants to be able to open “package stores” within existing stores in Texas. The Package stores would have separate hours and entrances from the regular retail and grocery operations.

“Texas law irrationally forbids any publicly traded corporation from owning or holding the permit needed to (operate a package store),” the suit argues. “Wal-Mart is therefore irrationally banned from competing with privately owned companies that are, unlike publicly traded corporations, allowed to obtain package store permits. Worse, Texas law irrationally excludes publicly traded hotel corporations from the prohibition against publicly traded corporations, and any publicly traded hotel with a hotel store may sell distilled spirits and hold package store permits irrespective of the public corporation ban.”

One Walmart shopper is excited about the idea.

“I think it’s going to be a good thing,” says Kendrick Moss. “A convenience for us.”

Walmart currently holds 543 permits to sell beer and wine at Walmart and Sam’s Club stores in Texas. Walmart sells liquor in 25 states.