Police drop charge against Mildura businessman questioning artist's 'Aboriginality' in viral video

Police have dropped a criminal charge against the former franchisee of Mildura's McDonald's restaurants, who was shown in a viral video last December questioning his neighbour's Aboriginality.

Robert Vigors, 65, was charged with attempted criminal damage over the December 14 incident, while Mildura woman Karen Ridge, 48, was charged with wilfully damaging an Aboriginal flag belonging to Indigenous artist Robby Wirramanda Knight.

Mr Vigors and his counsel did not appear in the Mildura Magistrates' Court on Tuesday but prosecutors withdrew the charge of attempted criminal damage, which was originally laid in late February.

In previous appearances, the court did not hear details of the specific allegations of the attempted criminal damage but Mr Vigors was contesting the charge.

Ms Ridge is due to face Mildura Magistrates' Court on November 11.

Mr Vigors was the owner of the Mildura McDonald's outlets until the weekend of the incident.

The chain later said it had "taken over the operation" of the franchise and that Mr Vigors was "no longer involved".

McDonald’s Australia condemned Mr Vigors' actions after he was caught on camera challenging Mr Knight over his Indigenous heritage.

The video showed Mr Knight being confronted by his neighbours, and Mr Vigors asking him: "Which 1 per cent of you is Aboriginal?"

Mr Knight can be heard replying: "What's a 'true Aboriginal'?"

Mr Knight said he later posted the video on social media in the hope that it would help combat racial "ignorance".

It went viral with the hashtag #toostrongforyoukaren.

A McDonald's spokesman said the comments made by Mr Vigors were "unacceptable" and did "not reflect the beliefs of the company as an inclusive workplace".

The franchise has since been taken over by former North Melbourne and Geelong AFL player Leigh Colbert.

McDonald's did not confirm whether or not its reasoning for the takeover was linked to the video.

It is believed Mr Vigors was looking to step away from the business anyway.