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10 years after legalization, Washington state cannabis growers face headwinds

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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/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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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.

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