Business
Arkansas Hemp Firms File Suit Against Delta-8 THC Ban
A group of hemp businesses is challenging a new Arkansas law that bans hemp-derived psychoactive cannabinoids such as delta-8 THC.
A group of hemp businesses has filed a legal action challenging a new Arkansas law that bans hemp-derived psychoactive cannabinoids including delta-8 THC, arguing the statute violates the 2018 Farm Bill’s provisions that legalized hemp agriculture. The lawsuit, which was filed in federal court in Little Rock on Monday by four hemp businesses, seeks an injunction blocking Act 629, a law banning hemp-derived psychoactive cannabinoids that went into effect on August 1.
Act 629 bans the production and sale of products containing delta-8, delta-9 and delta-10 THC and other variations of the cannabinoids inside the state of Arkansas. Such products have been legal under federal law since 2018, when that year’s Farm Bill legalized hemp with less than 0.3% delta-9 THC. Despite their low delta-9 THC content, other psychoactive cannabinoids can be extracted from hemp, and hemp-derived CBD can be processed into psychoactive cannabinoids in a laboratory.
The four plaintiffs in the case include a manufacturer, wholesaler, distributor and retailer of hemp products that would be affected by the ban. They are asking the court to block Act 629, arguing that the statute does not comply with the U.S. Constitution’s commerce and supremacy clauses and is a violation of the 2018 Farm Bill.
“Plaintiffs have been, and will be, harmed by Act 629,” the complaint reads, according to a report from the Northwest Arkansas Democrat-Gazette, “as they are unable to transport in and through Arkansas hemp-derived cannabinoid products that have been declared legal under federal law.”
Federal Court Ruled Delta-8 Is Legal In 2022
Last year, the federal Ninth Circuit Court of Appeals issued a ruling in a trademark case in which the legality of delta-8 THC was a key factor. The court confirmed that delta-8 THC is legal under the 2018 Farm Bill.
“Regardless of the wisdom of legalizing delta-8 THC products, this Court will not substitute its own policy judgment for that of Congress,” the appellate court wrote in its ruling. “If … Congress inadvertently created a loophole legalizing vaping products containing delta-8 THC, then it is for Congress to fix its mistake.”
The plaintiffs in the case are Bio Gen, LLC of Fayetteville; Drippers Vape Shop, LLC of Greenbrier; The Cigarette Store LLC of Colorado, doing business as Smoker Friendly; and Sky Marketing Corporation of Texas doing business as Hometown Hero. Drippers is a retailer of hemp products, including non-psychoactive CBD as well as hemp-derived psychoactive substances Delta-8 and Delta-9 THC, and has stores in the communities of Greenbrier, Cabot, Hot Springs, El Dorado and Benton, according to a report from the Arkansas Times.
The named defendants in the lawsuit are the state of Arkansas, Governor Sarah Huckabee Sanders, Attorney General Tim Griffin, the Arkansas Department of Finance and Administration, the Arkansas Tobacco Control Board, the Arkansas Department of Agriculture, the State Plant Board and the prosecuting attorneys of the state’s 28 judicial circuits.
Abtin Mehdizadegan, the lead attorney for the plaintiffs, says that his clients tried to avoid legal action before Act 629 was signed into law.
“Our suit asks the federal court in the Eastern District of Arkansas to enjoin the entirety of Act 629 because it unconstitutionally narrowed the definition of hemp-derived products in violation of the 2018 Farm Bill and impermissibly restricted the transportation and shipment of these products,” Mehdizadegan wrote in an email. “Before the bill was signed into law, we had lengthy dialogues with the defendants during the 2023 legislative session as the bill was making its way through the legislative process.”
“We also testified before a House Subcommittee to explain the constitutional infirmities in the initial draft of Act 629,” Mehdizadegan continued. “At the same time, we remain ready and willing to continue those discussions and would invite the State to meet us at the table to arrive at a sensible resolution. We do not oppose all forms of regulation and would support sensible policies that appropriately treat hemp-derived products for what they are: as an agricultural commodity.”
Cynthia Cabrera, chief strategy officer at Hometown Hero CBD, one of the plaintiffs in the case, said that Arkansas’ ban on hemp-derived cannabinoids would harm small businesses and hamper the growth of the state’s hemp industry.
“Mom-and-pop farmers, manufacturers, and retailers have put their life blood into building legacy businesses around a federally legal product,” Cabrera said in a statement to High Times. “Businesses like Hometown Hero invested in Arkansas in part relying on the state’s declared public policy to position itself at ‘the forefront of industrial hemp production, development, and commercialization.’ And overnight, Act 629 turned farmers into felons and retailers into drug dealers—all in violation of federal law. Ultimately, we would like to see reasonable regulation that allows businesses to grow and thrive while allowing adult consumers access to safe, legal hemp-derived products.”
Act 629 also includes provisions to regulate psychoactive hemp-derived cannabinoids in the event that the ban is struck down by the courts. Under the regulatory plan, wholesalers, distributors and retailers of the products would be required to obtain a permit from Arkansas Tobacco Control at a cost of $5,000 per year. Psychoactive cannabinoids derived from hemp would be legal, but the statute would prohibit mixing the compounds with additives such as liquids, sweeteners or other non-hemp products. The plaintiffs of the lawsuit are also challenging the regulatory plan, arguing that the rules put unreasonable burdens on them and amount to a “regulatory taking” of their legal property that makes it unusable.
Source: https://hightimes.com/news/arkansas-hemp-firms-file-suit-against-delta-8-thc-ban/
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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