Business
10 years after legalization, Washington state cannabis growers face headwinds
Washington state residents voted to legalize adult-use cannabis 10 years ago this month, and in that time, the market has been a success – but not for everyone, and the challenges have been substantial.
As the state’s recreational marijuana industry has grown and matured over the past decade, some of the primary issues today include:
- A lack of access to capital. The state’s residency requirements hinder outside investment.
- Low wholesale prices. Craft and small cultivators confront an oversupplied flower market.
- Limited social equity opportunities for minority cannabis entrepreneurs.
But even with those challenges, that’s not to say the market as a whole hasn’t done what it was intended to do, which was to create a state-licensed economy for legal marijuana companies.
The 2022 MJBiz Factbook estimates adult-use sales in Washington state retail stores this year at $1.5 billion-$1.7 billion and reaching $2.3 billion-$2.5 billion by 2026.
“In 10 years, we went from medical patients being afraid they would lose their house because their neighbors would call the police on them, to soccer moms now serving cannabis at cocktail parties,” said Jessica Tonani, CEO of Verda Bio, a Seattle-based cannabis company specializing in plant research.
“We have come an extremely long way.”
Tonani made those comments last week while on a panel with fellow Washington marijuana business owners hosted by the State Liquor and Cannabis Board (LCB).
Craft growers
Like other long-running adult-use cannabis markets such as Oregon and Colorado, Washington state growers are experiencing low wholesale flower prices as cultivators continue to flood the market.
This year, cultivators had a strong growing season, with little to no adverse weather events, which led to a bumper harvest.
Add that to an already oversupplied market, and prices are sure to fall even lower.
Ryan Sevigny, a cannabis grower and president of Landrace Brands in the Seattle area, said the hurdles are mounting.
“The industry today is a tough place to be a farmer, particularly if you are small and would consider yourself craft,” he added.
Shannon Vetto, CEO of Evergreen Market, a cannabis retail company in the Seattle area, echoed that, saying craft growers are hurting the most and “being a farmer right now is so hard.”
“We have the best crops coming out in October and no one to buy them.”
For several years, the state has been weighing whether to allow small cannabis farmers to sell directly to consumers, similar to how wineries and breweries are allowed to operate.
Sevigny favors the move, but he would also like to see a discussion about defining craft cultivation licenses.
Vetto added that while retailers are nervous about direct sales, she believes “craft growing is a primary part of our ecosystem and we have to find a way to do that.”
Other cultivation hurdles cited included:
- The challenge cultivation businesses faced when state regulators changed the rules around canopy usage, which forced some growers to alter their cultivation plans.
- The cost, both financial and environmental, of using plastic radio-frequency identification (RFID) tags to account for plants in the Metrc seed-to-sale tracking system. One estimate puts the cost at about 33 cents per plant tag.
- The state’s excise tax rate of 37% on adult-use cannabis is by far the highest such tax in the United States. The average tax rate – including the excise tax and state and local sales taxes – totals 46.2%, which pushes some consumers to the illicit market.
Access to capital
Another long-standing complaint among industry officials is the lack of access to capital because, by law, cannabis business entrepreneurs must reside in Washington state for at least six months before obtaining a license.
Allowing out-of-state capital would “level the playing field,” Vetto said.
According to Vetto, marijuana multistate operators already are finding their way into the market despite the restrictions.
“We have some of the best growers in the nation, as well as some of the best operators, but I think we’re losing ground at some level,” Vetto added.
For Jim Makoso, president of Lucid Lab Group in Seattle, that lack of access to capital is a major obstacle to social equity gaining more traction in the Washington state market.
According to data self-reported to the LCB in 2020, less than 20% of marijuana retail owners identified as minorities.
Lifting the ban on outside investment is one component that could completely change the landscape for small and midsized businesses, Makoso said.
“The concern from a social equity standpoint is if we enable outside investment, larger companies will be able to come in and do what these large companies have done in other states, which is take a big foothold, have a huge amount of capital and push out products at lower margins to take advantage of higher volumes,” he added.
“Certainly, that’s a risk – and one you can’t mitigate away from.”
But, Makoso said, the risk to the industry is worth it.
“For social equity applicants, we need a thriving industry, and for that, you need access to capital,” he said.
Interstate commerce
One possible solution to many of the challenges in the market has been the potential advent of interstate commerce in the event of federal legalization.
To that end, an official from the Oregon Liquor and Cannabis Board met on Monday with Washington state regulators, including Director Rick Garza, so LCB staff could learn more about an Oregon law intended to position the state for interstate commerce should the federal government act.
In 2019, Oregon Gov. Kate Brown signed into law the bill that would permit the state to enter into agreements to export marijuana to other states.
The federal government must first lift its marijuana prohibition for Oregon’s export law to take effect.
Sevigny said that “oversupply could quickly evaporate if that comes to fruition.”
Access to capital also factors into interstate commerce. Washington companies would need to scale up quickly if the state wants to function as an export market, which seems likely with its abundant sun-grown cannabis.
Tonani sees an opportunity where “a lot of states might come online that have no infrastructure to grow right now.”
Source: https://mjbizdaily.com/washington-state-cannabis-industry-10-year-anniversary/
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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