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Australia’s medical cannabis sales might surpass Canada’s in near future

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Australia’s medical cannabis industry continues to experience brisk growth in patients and sales, and experts say the market could even surpass Canada’s medical sector this year.

Australian patients generally access medical cannabis via two government-regulated programs: the so-called Special Access Scheme Category B (SAS-B) system or from an Authorized Prescriber, typically a physician.

Australia legalized medical marijuana in 2016.

According to Therapeutic Goods Administration (TGA) data, the number of SAS-B patient approvals for medical cannabis increased sharply every year from January 2018 to January 2022.

Patient approvals rose from 25,160 in 2019 to 57,710 in 2020 and almost 122,000 in 2021.

However, that number dropped to 117,000 in 2022.

Industry sources say SAS-B approvals declined last year partly because of reforms implemented in late 2021, which effectively pushed some patients to pick an alternative pathway for securing medical cannabis – through an Authorized Prescriber (AP).

TGA data shows that medical cannabis approvals through an AP have increased dramatically since late 2019, when only 322 approvals were recorded.

That figure reached 172,185 approvals through the AP program in the second half of 2022.

“The TGA approval data shows that the Australian market is continuing to grow rapidly, with an increasing number of patients accessing medicinal cannabis via an Authorized Prescriber, rather than via the SAS-B pathway,” Rhys Cohen, global partnerships and engagement adviser at the Victoria, Australia-based Penington Institute, a drug policy organization, told MJBizDaily via email.

“This is probably due to a combination of the November 2021 reforms, which made it easier to become an AP, and ongoing growth in the number and size of medicinal cannabis clinics, which prefer to use the AP pathway.”

However, Cohen said the caveat is no one, including the TGA, knows exactly how many actual patients there are in Australia.

AP versus SAS-B

According to a freedom of information request filed by Cohen, a roughly equal volume of medical cannabis units was sold via the AP and SAS-B programs in 2022, between January and June.

Comparing the data for the two streams is also difficult. There could be overlap in the data.

On some occasions, patients could get cannabis prescriptions via the SAS-B pathway and some via AP – even facilitated by the same doctor.

On other occasions, a patient might receive SAS-B approval – which is usually valid for 24 months – but, in the meantime, could change to seeing an AP.

In that case, the same patient would be accounted for in both the SAS-B and AP data at the same time.

Nevertheless, industry experts say the data paints a picture of an industry that is growing quickly.

“The market has been at least doubling in size every year since its inception, and that growth is set to continue,” Cohen said.

Cohen estimates that patients spent roughly 250 million Australian dollars ($167 million) on prescription medical cannabis products in 2022.

“That could very well double in 2023,” he said, warning that “any forecasts should be treated with caution.”

That would put Australian spending ahead of Canada’s shrinking medical cannabis industry, which was worth 407 million Canadian dollars ($302 million) in 2022, which is roughly equal to AU$449.4 million.

Tommy Huppert, CEO of Melbourne-based cannabis producer Cannatrek, said Australia’s industry continues to mature as the number of doctors prescribing cannabis rises.

“Actual patient approvals have continued to grow well due to more and more Approved Prescribers becoming active, who do not need to apply via the SAS-B application,” he said.

November 2021 reforms

Australia overhauled the rules governing the Authorized Prescriber and SAS-B systems in November 2021.

Before the reforms, medical practitioners needed government approval to prescribe a specific medical cannabis product via the SAS-B pathway or become an Authorized Prescriber..

Authorized Prescribers also required government approval for each cannabis product they prescribed.

However, according to a story by Cohen in the Australian publication Cannabiz, if a certain product a doctor had been authorized to prescribe was out of stock or the respective physician wanted to prescribe a different cannabis product, the SAS-B pathway was required.

The regulator, the Therapeutic Goods Administration, changed all this in the 2021 package of reforms.

Rather than requiring government approval for a specific product, the TGA created five categories of medical cannabis products.

The new categories are products containing:

  • At least 98% CBD.
  • Between 60%-98% CBD.
  • Between 40%-60% CBD.
  • Between 60%-98% THC
  • More than 98% THC.

The reform eliminated the requirement for doctors to receive approval to prescribe each specific product.

Instead, doctors are now approved for product formats, such as flower or oil in the above measurements, for the five respective categories of products.

“The impact has been a significant improvement in patient access,” Cohen told MJBizDaily via email.

“The reforms have made it easier and quicker for prescribers to get approved, and reduced the time and cost involved for patients when their prescribed product is unavailable or discontinued.”

In another reform, Cohen said Australia made it quicker and cheaper to become an AP for certain treatments.

As a result, the number of Authorized Prescribers rose from fewer than 200 before the reforms to more than 1,900 today.

Big importer – for now

Australia is one of the biggest importers of unapproved medical cannabis products and cannabis for scientific purposes in the world, along with Israel and Germany.

Australia’s imports have grown substantially since 2018, when roughly 961 kilograms (2,119 pounds) were imported, per data shared with MJBizDaily by the Department of Health.

Sixty-five percent of those imports originated in the United Kingdom.

The following year, that number rose to 1,288 kilograms, but Canadian producers accounted for 77% of the imported quantity.

The figure jumped substantially in 2020 and 2021, when 4,567 kilograms and 7,587 kilograms were imported to Australia, respectively.

Canada accounted for a combined 73% of the imported quantity for those years, according to the Department of Health data.

The health agency said the quantities are a combination of raw cannabis, finished cannabis goods and extracts used for medical and scientific purposes.

Matthew Cantelo, CEO and founder of ANTG, a cannabis producer headquartered in Byron Bay, New South Wales, said the data shows that the Australian market has been dominated by imported products for the first five years.

“This was due to the fact that Australia needed to invest in and build out capabilities,” he said.

However, he noted that a handful of Australian companies have now built out those capabilities, so local production should be more competitive in the market.

“Also, Australia has a great opportunity to become a global exporter of quality cannabis medicine,” he said.

ANTG has been exporting cannabis products to Germany since 2021.

New import rules

Starting in July, all medical cannabis products released for sale in Australia will be required to comply with new requirements on manufacturing quality, child-resistant packaging and labels.

The new requirements were set out last September in the so-called TGO 93, which is a standard specifying the minimum quality requirements for medicinal cannabis products.

TGO 93 applies to any medicinal cannabis product imported into or supplied in Australia. It does not apply to cannabis products manufactured in Australia solely for export.

The new rules will also level the playing field between imported cannabis and cannabis produced locally.

Only products produced in Australia had been required to be manufactured in facilities certified Good Manufacturing Practice (GMP), meaning Australian-made cannabis products had to conform to stricter standards than imported ones.

The changes will require imported products to be manufactured in facilities meeting “equivalent” GMP codes.

“Capacity keeping up with demand is a challenge,” ANTG’s Cantelo said.

“With the regulatory changes to TGO 93 looming, we will see some overseas supply ceasing.”

Cantelo said the TGA regulations are some of the strictest in the world, “so those Aussie companies that persisted, and are now in full production, are the future of the industry in Australia.”

Source: https://mjbizdaily.com/australia-medical-cannabis-sales-might-surpass-canada-in-near-future/

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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