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Canada business leaders note ‘lost opportunity’ for cannabis in Trudeau-Scholz meeting

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Olaf Scholz’s recent trip to Canada is raising eyebrows among Canadian business executives over what wasn’t discussed during talks between the German chancellor and his Canadian counterpart, Prime Minister Justin Trudeau.

Cannabis and mainstream business leaders said Canada missed an opportunity last week to highlight its regulated cannabis industry and promote international trade when Scholz visited the only large country in the world to have legalized marijuana.

Germany announced its intention earlier last year to regulate the distribution and sale of recreational cannabis and, this summer, kicked off the preparatory phase. A draft law is expected to be published this year.

Industry officials said the circumstances created a unique opportunity for the Canadian prime minister to back the multibillion-dollar industry, which has struggled to tap into international markets.

But a spokesperson for the Office of the Prime Minister confirmed cannabis was not discussed between the German leader and Trudeau during Scholz’s trip last week.

“It didn’t come up? Shocking. It’s shocking,” George Smitherman, CEO of the Cannabis Council of Canada, which represents dozens of businesses, said in an interview with MJBizDaily.

“Canada has a chance to align with Germany, and we’re not advancing that? That’s crazy,” added Smitherman, a former deputy premier for Ontario who also was the province’s energy and infrastructure minister.

Smitherman said opportunity abounds between Canadian and German cannabis businesses.

Germany is suffering through an energy crisis because of the war in Ukraine, and cannabis cultivation can be incredibly energy intensive, he said.

That, plus the fact that Canada already has more cannabis cultivation capacity than it will ever need, puts Canada in a position to ramp exports.

Canada has so much excess cannabis, it has destroyed more than 1 billion grams since 2018, and inventories are still overflowing. (That cannabis is thought to mostly be unsellable, but the production capacity remains in place.)

“You might have thought that the combination of these two, the symmetry if you will, the rationale for having Canada and Germany collaborating could be an extension of the energy cooperation,” Smitherman said.

“I’m a former energy minister. I was looking at it from that standpoint.”

Canada is already Germany’s top supplier of medical cannabis, and business leaders say that could easily be expanded.

Canada’s Chamber of Commerce said the country missed an opportunity to promote the legal sector internationally.

“As the first G-7 economy to legalize recreational cannabis, Canada has a narrow first-mover advantage and should promote the legal sector internationally,” the business group said in a statement to MJBizDaily.

“Although cannabis was not on the agenda for German Chancellor Scholz’s short visit to Canada earlier this month, the Canadian Chamber’s National Cannabis Working Group believes Canada should actively work towards securing future meetings with countries like Germany to share industry best practices and to facilitate business opportunities, including the export of medicinal cannabis.”

Canada is top supplier 

Canada was the top supplier of medical cannabis flower and extracts to Germany last year, according to data provided by Germany’s Federal Institute for Drugs and Medical Devices (BfarM).

In 2021, Germany imported 6,493 kilograms (14,315 pounds) of cannabis from Canada, or 31% of its medical and scientific marijuana imports.

Denmark was the next closest, with 3,726 kilograms, or 18% of the total amount imported.

Business leaders estimate the opportunity to be in the hundreds of millions of dollars.

Germany is expected to overtake Canada as the largest federally regulated medical marijuana market in the world in 2022.

Economic driver 

Despite massive losses at a small number of producers, cannabis has been a driver of economic growth in Canada.

The industry has added roughly 43.5 billion Canadian dollars ($37 billion) to the country’s economy and sustained 151,000 jobs since legalization in 2018, according to a report by accounting firm Deloitte.

Industry leaders have said the Canadian government could be doing more to help struggling cannabis producers make inroads into foreign markets.

“That the (Prime Minister’s Office) confirmed that is really kind of a smoking gun for just how leadership attention and interest in Ottawa has diminished over their own prized initiative,” Smitherman said of the absence of cannabis as a topic in the Scholz-Trudeau discussions.

“If I was prime minister, and I was meeting with the German Chancellor, I might actually be saying, ‘You know, chancellor, us two leading G7 nations, the legalizers of cannabis, we have a chance to be the foundation for countries in favor of a $100 billion industry that’s emerging, what can we do strategically to align that? For instance, could Canada offer Germany supply arrangements?’”

Smitherman said the federal government’s “neglectful leadership model” is being replicated in several provinces and “is an extraordinary threat to the public health goals and to the livelihoods of many Canadians.”

‘Incredible lost opportunity’

Nathan Mison, CEO of Alberta-based Diplomat Consulting, called Scholz’s visit an “incredible lost opportunity.”

He said a majority of Canadians want the cannabis sector to be promoted as an economic opportunity, citing data from Ontario-headquartered pollster Abacus Data.

Mison, co-chair of the National Cannabis Working Group for the Canadian Chamber of Commerce, believes the federal government should treat the cannabis industry like it does mining.

“When we’re looking for positive opportunities for our cannabis sector, what an incredible opportunity to treat cannabis sector regulation the same way we exported Canadian mining rules around the world,” he said.

Mison said 55 countries are weighing cannabis regulation, and it’s in Canada’s best economic interest to be involved in that process, where possible.

“We should be looking to trade opportunities for Canadian businesses to understand how to operate in emerging jurisdictions.”

Source: https://mjbizdaily.com/canada-business-leaders-note-lost-opportunity-for-cannabis-in-trudeau-scholz-meeting/

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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