Business
Bedrocan owes profit to its focus on medical cannabis: Q&A with founder Tjalling Erkelens
Are medical and adult-use cannabis effectively the same thing, and can businesses thrive in both markets?
Some executives and regulators will tell you there is no real difference, but Bedrocan founder Tjalling Erkelens isn’t one of them.
The Veendam, Netherlands-headquartered cannabis producer does not waver from its focus on and belief in medical cannabis and operates under a clear distinction from adult use – despite the hype that often comes with new recreational markets.
Erkelens says the focus on medical is part of the core reason for Bedrocan being a profitable cannabis producer.
“People were asking me, ‘Why don’t you do rec?’ I said, that will take my focus off what I’m really trying to do. I think adult use in the end will be a bear market – the lowest price will prevail,” he said in an interview with MJBizDaily.
Erkelens spoke with MJBizDaily about what it takes to run a profitable medical cannabis company in Europe, the opportunity in Germany and expanding into new markets such as Denmark.
When Canadians were spending billions to expand their cannabis businesses globally, in countries with no meaningful sales, you didn’t follow them. What did you know that they didn’t?
I want to spend money responsibly.
That’s more or less the old-fashioned moral here in the Netherlands and in Europe in general – if you have investors on board, use and spend their money wisely and make your company profitable.
What I have always been doing is producing on demand. That is a core rule in the company. Figure out the demand, then live up to that level and, if needed, expand.
Overproduction is a major problem in the industry, not just in Canada. Why is producing on demand so important to you?
Produce what you can sell, and don’t produce what you cannot sell.
Your biological assets will go up not in smoke or vape, but they will end up in the trash can in the end, because in the pharmaceutical world, there are expiration dates.
I never had an idea of expanding without demand, thinking the world’s demand would grow (to reach my production).
When people started talking about thousands of kilos and metric tons (for export), I was thinking, “Where are those tons going?”
If you want to sell cannabis in Europe as a medical product, as a pharmaceutical product, you better know what you’re doing.
I have seen North Americans approach this basically from an adult-use attitude and not from a true medical attitude – especially on the cultivation side.
Your cultivated product should have a level of standardization – genetically and chemically – that allows it to be processed as a true pharmaceutical product.
What else is core for Bedrocan?
Your product is also core. You need to know what you’re producing.
If you’re the CEO of a (cannabis) company, you need to know your cultivation department inside out.
You need to know the genetics of your product inside out.
We started with small-scale production. That is where I learned.
Why are you expanding into Denmark now and not five years ago, like most of your competitors?
There was no definitive regulation in Denmark that allowed for commercial export. That only happened two years ago.
There was a pilot program for Danish patients.
A lot of Canadian companies went to Denmark in the hope that the pilot program would be finalized and become part of the law, which eventually happened in the end. (Most Canadian cannabis companies have exited Denmark.)
But those are the things (regulatory and legal evolution) I cannot bet on.
I cannot bet on a regulation or law that is still in the pilot phase and then spend millions on something that might end in a few years again.
So we waited until May 2021, when the Danish parliament approved the definitive law for production, cultivation, processing and exporting.
Now it is law, so we can go there.
Why now? Because of demand. We have demand for product. It’s not a wild idea for us to set up a production facility in Denmark.
The production capacity has been sold for everything we are building now, so I know what I’m getting when I open that facility.
I know the people working there will not be fired two years after it opens.
What I also know is my numbers on production, revenue and profit. I know those numbers already. That’s the way we operate.
What’s your goal for Bedrocan?
Bedrocan will diligently but carefully expand its activities – and footprint if needed – to wherever legitimate demand for its products becomes apparent.
Bedrocan is not focusing on business leadership nor domination but, rather, on fulfilling the needs of patients and their professional caregivers in the most ethical and sustainable way possible.
Medical demand is rising on multiple fronts, on the patient and scientific side, because of the quality and standardized level of our products.
What about recreational cannabis?
I see too many risks in the adult-use market business-wise.
It’s very unwise to mix two totally different markets – to mix them in one company.
One of the mistakes in the boardrooms is when they think cannabis is just cannabis, but that’s not the case.
Cannabis for medical purposes is a very different product compared to cannabis for recreational use.
Medical cannabis is strictly about standardized products, proven quality and efficacy.
One of the things we’re doing is clinical research.
We opened up our clinical research unit just this year because we now have the money to do it.
We’re basically bankrolling everything ourselves.
This is the road we have chosen, to grow incrementally on demand.
Scientific and clinical research for us is a very important leg to stand on.
Some North American businesses bet heavily – and lost – on Germany’s original plan for full legalization. What did you expect and why?
In the German situation, there was unbelievable optimism, but I had never been optimistic about that situation from the beginning.
The political optimism that was there two years ago – we immediately said they’re not going to make it and it isn’t going to work.
Germany as a country will not trespass on (United Nations) and European rules. That’s impossible, because Germany is the driving power in Europe.
In Europe, we are also dealing with a number of countries that don’t want to legalize at all.
I’m still surprised Germany found a compromise (for regional trial programs), but they still have to check back in with the European Union again before they launch the plan for social clubs and homegrows.
What they did in the meantime is separate medical from rec, and I am very happy about that.
Source: https://mjbizdaily.com/bedrocan-focus-on-medical-cannabis-builds-profits-tjalling-erkelens/
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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