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As marijuana break-ins skyrocket in California, business owners take action

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Security cameras captured break-ins at SOG Army, which runs cannabis cultivation and distribution operations in California. (Photos courtesy of B.J. Hughes)

Like most marijuana business owners he knows in California, Sebastian Maldonado’s vertically integrated cannabis company, Delta Boyz, has been burglarized repeatedly.

Maldonado, a Delta Boyz co-owner, estimates the company – which operates a store, distribution center and cultivation facility south of Sacramento, in Isleton – has suffered $1 million in stolen product over the past three years.

Instead of improving, however, the 2 a.m. alarms, broken doors, busted locks and pilfered high-end cannabis Maldonado later sees fenced on Instagram has worsened.

Four incidents occurred in March alone at Delta Boyz: three attempts and one successful break-in, according to Maldonado.

Despite ample security footage and alarms that immediately notify police of a burglary in progress, only one of those incidents resulted in an arrest.

Across California, burglaries continue to plague licensed cannabis businesses with near impunity – sometimes with deadly results.

The ongoing crime wave is forcing business owners to spend thousands of dollars a month on security measures.

Moreover, the growing rash of unsolved crimes is ringing alarm bells among cannabis executives, who are concerned about the negative impact on the state’s legal industry.

According to state data obtained by MJBizDaily, reported break-ins and burglaries at California cannabis businesses more than doubled from 2021 to 2022.

This year, according to multiple interviews, the crimes have become more sophisticated, with break-in crews armed with sophisticated tools appearing at distribution warehouses that don’t have a publicly listed address.

That’s led business owners to suspect an “inside job”: someone currently or formerly employed in the industry, who would know where to go and what to look for, and whose identity would be in the state-mandated database of qualified cannabis employees.

But since the break-ins have continued and law enforcement has made few arrests, frustrated and exhausted business owners say they’ve been forced to take matters into their own hands.

On Thursday, a coterie of at least a half-dozen licensed cannabis businesses, including Cookies-branded Berner’s on Haight in San Francisco, will make a public appeal.

They’ll offer reward money for information that leads to any arrests, as well as an ultimatum: If authorities cannot stem the tide of break-ins, the marijuana legalization experiment is at risk.

And it’s only a matter of time before more people are seriously hurt or killed, they say.

Getting worse

Industry officials say the break-ins at licensed cannabis businesses in California gathered momentum during the chaos and confusion of the May-June 2020 protests that followed George Floyd’s murder.

Since then, the break-ins have risen rapidly after COVID-19 pandemic lockdowns were lifted, according to state data.

In 2022, licensed businesses in California reported 329 break-ins or burglaries with losses, according to California Department of Cannabis Control figures provided to MJBizDaily.

That’s more than double the 147 burglaries reported in 2021.

The worst-hit counties were Los Angeles, the state’s most-populous, with 111 reported incidents.

Alameda County, home to cannabis-friendly cities Berkeley and Oakland, had 52 reported incidents.

Through March 24 of this year, 85 break-ins had been reported to the DCC, according to state data.

Many break-ins follow a pattern, with several carloads of individuals showing up at businesses in the wee hours.

Several have been described as “brazen,” with security gates pulled from their frames by vehicles.

That’s what happened last month at Reese Benton’s Posh Green, one of the few San Francisco marijuana businesses owned by a Black woman.

San Francisco police confirmed the break-in at Posh Green. No arrests have been made.

It’s unclear how many break-ins result in arrests. That data is not kept by the DCC.

At least several times, break-ins have turned fatal.

Individual law enforcement agencies, including the Sacramento County Sheriff’s Office and San Francisco police, did not immediately respond to requests for comment about their approach to such crimes.

But among licensed business owners, the near-universal belief is that law enforcement simply does not prioritize crimes against marijuana businesses.

“No police in any jurisdiction has helped at all,” said B.J. Hughes of SOG Army, which runs cultivation and distribution operations in Santa Rosa, in Sonoma County, and Redding, in Shasta County.

In both places, he says, police response times were appallingly slow, and law enforcement seemed uninterested in pursuing a case.

After a recent break-in in Santa Rosa, Hughes said, police responded 25 minutes after the first alarms were triggered.

In Redding, he said, the response time was 40 minutes.

Hughes said he provided security-camera footage with license plate numbers to police, but no arrests have been made.

Even after he hired a private investigator who identified a potential perpetrator – whom Hughes believes might have been formerly employed by a licensed distributor who had visited his facility – police “did not care to follow up,” he said.

“Nobody gives a s***,” he said. “They just feel like this is the cost of doing business.

“We can’t make the police do anything.”

Arm yourself

The problem is worsening despite widespread awareness, with security footage showing gangs of hooded burglars loading up cars with cash and product appearing on the evening news.

At the suggestion of law enforcement, Maldonado hired 24-hour security guards armed with semi-automatic AR-15 rifles.

The monthly tab is $20,000 per month, which “eats away at our margins,” he said.

And Maldonado is well aware of the risk of a shootout, which could lead to him losing his business licenses.

“It’s just an absolute nightmare,” he said.

Even with well-armed guards, the break-ins have continued.

After he lost $250,000 during a late-January heist, carloads of burglars showed up four times in March, Maldonado said.

Sacramento County sheriff’s deputies made an arrest – and that was only after Delta Boyz took matters into its own hands.

After a March 5 break-in, Maldonado said, “we followed one of the cars full of our weed” all the way from Isleton to the Sacramento city limits, about a 45-minute drive on twisty country roads and Interstate 5, he said.

Waiting sheriff’s deputies intercepted the alleged burglars at a highway off-ramp and arrested them, but even then, Maldonado didn’t recover any losses:

The stolen product is sitting in a sheriff’s department evidence locker, getting stale, he said.

Inside job

In San Francisco, burglars hit Sunset Connect – a social equity-licensed distribution and manufacturing facility in the city’s semi-industrial South of Market district – in the wee hours of March 29, according to owner and founder Ali Jamalian, who shared security-camera footage with MJBizDaily.

Located next to one of the many auto-body shops in the area, Sunset Connect’s address isn’t publicly listed, either on the state DCC’s database or via aggregators such as Weedmaps that advertise marijuana retailers.

From the street, the business looks low-key: a matte-black paint job over bricks and a roll-down steel gate with zero signage.

Both the expansion of burglaries of retailers and the burglars’ conduct is indicative of an “inside job,” Jamalian said.

“It’s definitely someone from within the industry that’s doing these hits, or formerly part of this industry,” he said.

“I think that is obvious by the way they move through our facilities. They know what to look for.”

‘Needs to be addressed’

On Thursday, Jamalian and several other San Francisco business owners whose dispensaries or warehouses have been robbed – including a location of Stiiizy, where armed assailants kidnapped an employee and drove him across the Bay Bridge to Oakland and back before forcing him to open locked areas – will make a public appeal for better law enforcement response as well as attention from elected officials.

If politicians prioritized defending marijuana stores, police response times would improve, said Wesley Hein, president of the Cannabis Distribution Association, which advocates for the 1,000-plus licensed distributors in California.

“The problem is not insurmountable … but on aggregate, this has not been prioritized,” he said, noting a common complaint: Cannabis businesses do not enjoy the public services they should considering the steep taxes they pay, with local sales and excise taxes heaped upon state excise taxes.

“This industry deserves better services across the board,” he said.

“This needs to be addressed now.”

Source: https://mjbizdaily.com/california-cannabis-operators-take-action-as-break-ins-skyrocket/

Business

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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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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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.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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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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