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Canada cracking down on words ‘soda’ and ‘cola’ on cannabis labels

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Health Canada is asking federally licensed cannabis producers to stop using certain words on labels and in promotions for infused beverages, warning they could appeal to young people.

The words – “soda,” “cola,” “root beer” or “ginger ale” – do not comply with Canada’s strict labeling and promotions requirements for cannabis, according to an email obtained by MJBizDaily that was sent by Health Canada to companies producing the affected products.

Health Canada is requesting businesses to “cease all non-compliant promotion and labelling of cannabis,” the email reads.

The apparent crackdown could have a big impact on the increasingly popular carbonated cannabis beverage category, which accounts for almost 60% of all cannabis beverage sales.

About half of the best-selling carbonated cannabis beverages could potentially be affected, according to an analysis by Seattle-based market analytics firm Headset.

George Smitherman, CEO of the industry group Cannabis Council of Canada, is perplexed by Health Canada’s latest actions.

“The array of beverages available to adults in a store where kids cannot go has improved significantly, but many companies will be put out of business by these prohibitions on nomenclature that are not rooted in science,” he said in a phone interview.

Another industry executive, who requested anonymity, voiced concerns about how Health Canada’s move could undermine the marketing of infused beverages.

“It’s unclear to me what alternative labeling would satisfy Health Canada, yet also properly inform potential consumers of what kind of product is on offer,” the executive said.

Replying to queries from MJBizDaily via email, Health Canada acknowledged it is communicating with the cannabis industry “regarding beverages containing ‘soda’ terms in their name.”

Citing a policy statement on the Cannabis Act, the spokesperson said Health Canada’s decisions about whether a product is appealing to young people are made “based on the facts of each case and after considering a range of factors.”

Those factors include a product’s: shape, color, smell, flavor, name and how it’s presented to consumers.

“The terms ‘soda,’ ‘cola,’ ‘root beer’ and ‘ginger ale’ are considered potentially appealing to youth because they commonly refer to a soft drink, which is one of the examples set out as being prohibited under the policy statement,” the spokesperson said.

The email sent by the federal regulator to licensed producers stated, “It is Health Canada’s position that the use of certain terms commonly referring to a sweetened soft drink, such as ‘soda’, ‘cola’, ‘root beer’ or ‘ginger ale’ may result in the sale of cannabis with packaging/labelling that is prohibited.”

“If required, Health Canada may take enforcement measures to address non-compliance or mitigate risks to public health or public safety,” the spokesperson wrote.

The letter states that the Cannabis Act prohibits:

  • The promotion of cannabis, accessories or any service where there are reasonable grounds to believe it could be appealing to youth.
  • The sale of cannabis or accessories if there are reasonable grounds the package or label could appeal to young persons.

MJBizDaily asked Health Canada if the ban on the word “soda” extends to other products, such as dried herb and gummies.

The agency has not yet responded.

Market impact

Carbonated cannabis beverage sales have grown substantially in recent years.

In 2021, carbonated cannabis beverage sales amounted to approximately 22.7 million Canadian dollars ($17 million) in provinces tracked by Headset.

That figure jumped 70% year-over-year to CA$38.6 million in 2022.

Through the first five months of 2023, the products reached CA$22 million in sales, putting the category on pace to approach CA$50 million this year.

Headset monitors sales in Alberta, British Columbia, Ontario and Saskatchewan, which together account for approximately three-quarters of all legal sales of recreational marijuana in Canada.

Approximately half of the top 20 carbonated cannabis beverages in terms of sales between June 2022 and May 2023 had at least one of the prohibited words in their brand name, the Headset data suggests.

The three top-selling carbonated cannabis beverages in that time were:

  • “Cream Soda,” an XMG-brand produced by Truss Beverage Co.
  • “Cherry Cola,” produced by Sweet Justice, a brand by Electric Brands Inc.
  • “Mango Pineapple Sparkling Drink,” by Truss.

Industry pushback

Smitherman of the Cannabis Council of Canada said industry officials are in communication with Health Canada over the move.

“We haven’t conceded this one,” he said.

“We have a very active beverage caucus group. We’ve been in a letter-writing frenzy back and forth with Health Canada, and we’re not ceasing in our efforts to press them to demonstrate what science is behind their actions.”

Smitherman said Canada’s rules leave legal businesses with too little leeway to define and differentiate products.

“It’s really galling that Health Canada has got this attention to picayune matters related to cannabis, which has got all this protective wrap around it, built in a context of precaution, and alcohol is a complete free-for-all,” he said.

The executive who requested anonymity said cannabis consumers expect to be able to purchase legal, infused beverages with common beverage flavors and characteristics, “like soda and cola.”

“Obfuscating these legal products simply benefits the illicit market, which makes competitive products that have no restrictions on naming or design elements, etc.

“This restriction imposed by Health Canada harms the ability of legal, regulated products to compete with illicit ones.”

Source: https://mjbizdaily.com/canada-cracking-down-on-words-soda-and-cola-on-cannabis-labels/

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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