Reuters – A federal prosecutor in Brazil has launched a civil inquiry into McDonald’s Corp (MCD.N), franchisee Arcos Dorados Holdings Inc (ARCO.N) and other franchise groups over alleged violations of franchise law, antitrust provisions and tax avoidance, the prosecutor’s office said on Friday.

Brazil opens probe into McDonald's, Arcos Dorados franchisee - 04 MarchMcDonald’s referred questions to Arcos Dorados, which said it had not been officially notified of the action by Brazilian prosecutor Marcos Jose Gomes Correa.

“The company provides every assurance that it complies with all the laws in all of the markets in which it does business,” Argentina-based Arcos Dorados said in a statement.

Correa’s office mentioned the probe had just started and did not offer additional details.

The UGT, one particular of Brazil’s largest labor federations, as well as other labor groups have been pressing prosecutors to investigate McDonald’s on a range of difficulties such as tax evasion, unfair competitors and labor violations.

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