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Canada Destroys a Record Amount of Cannabis

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How Speculative Cannabis Investment Led to An Environmental Nightmare in Canada

For the first time since Heath Canada began tracking it after legalization, they report that over a quarter of their domestic cannabis crop was destroyed in 2021. Over 425 million grams, a full 26% of the unpackaged dried flower produced last year was destroyed, along with all the resources that went into growing it, leading to an environmental nightmare for a supposedly green industry. 

Glut of Unsellable Products Leads to Astronomical Rate of Product Destruction

In addition to the unpackaged dried cannabis that was destroyed, more than 140 million grams of unpackaged extracts (17%), edibles (4%), and topicals were destroyed (4%). If that wasn’t bad enough, more than 7 million packaged products were also destroyed (on average, 3% of the total). The percent of the crop destroyed has gone up every year that Health Canada has data available, with last year seeing a dramatic increase from 19% to 26%, but experts suspect that is still an undercount. “The 425 million grams destroyed is likely only a fraction of the cannabis that was grown but has no market, tons of product remains in inventory in various formats,” says Stewart Maxwell, a crop consultant and founder of Elevated Botanist, adding “I have seen fresh frozen product offered on the market that is several years old.”

Tammy Jarbeau, Senior Media Relations Advisor for Health Canada, told High Times that the reasons for product destruction “include, but are not limited to: crop losses; post-harvest disposal of unusable plant material (e.g., stalks); recalled products; and elimination of unsold or returned products.” Maxwell noted that when it comes to packaged products, “any typo on a label can cause a recall,” which may be a contributing factor to the millions of packaged products destroyed. While, thankfully, “Producers must have recall insurance,” that costs tens of thousands of dollars per year. Unfortunately, Jarbeau was clear that, due to how they collect their data, Health Canada does not know “the amount or percent of cannabis destruction that can be attributed to recalled products.”

Quantities of Unpackaged Cannabis Destroyed (January – December 2021)

Cannabis classQuantity destroyedQuantity destroyed as a percentage of total unpackaged production for the class of cannabis
Dried cannabis425,325 kilograms26%
Cannabis extracts40,454 kilograms17%
Edible cannabis97,959 kilograms4%
Cannabis topicals3,940 kilograms4%

Quantities of Packaged Cannabis Destroyed (January – December 2021)

Cannabis classQuantity destroyedQuantity destroyed as a percentage of total packaged production for the class of cannabis
Dried cannabis3,576,232 units3%
Cannabis extracts1,118,148 units3%
Edible cannabis2,421,823 units5%
Cannabis topicals15,359 units1%

Source: Health Canada

The Root Cause Of Oversupply – Speculative Investment

The huge increase in crop destruction last year is quite paradoxical, as it came at a time when the COVID-19 pandemic drove up cannabis sales in Canada. So, while sales were very good, they were not good enough to deal with a severe oversupply in the market. Jarbeau called the destruction “a part of normal business practices” and attributed the escalating rate of destruction to “the increase in number of the federal license holders since 2018.” Maxwell had a more pointed view, “The glut of product on the market is entirely a factor of overproduction driven by investment hype.” At the onset of legalization, many large companies “were able to raise billions on promises to dominate a brand-new industry,” using square footage of cannabis canopy as a selling point, which Maxwell says led to “an exponential overbuilding of cultivation facilities.” Making matters worse, that cannabis was not very good and didn’t sell, which led to “many of these facilities were shuttered,” such as the Aurora Sky facility in Edmonton

An Environmental Catastrophe with Incalculable Costs

Maxwell says that based on the typical cost of goods sold, “the cost of the product destroyed is in the billions,” but that doesn’t take into account the cost of the facilities themselves and other resources spent to grow the cannabis. “This overproduction is an environmental catastrophe and the energy required to cultivate this glut is incalculable,” says Maxwell, “When facilities costing tens of millions of dollars are built, then closed without ever producing product of any quality, the destruction of capital and energy resources is astounding.” 

When asked if they collect information on the water, fertilizer, and other resources used when growing cannabis, Jarbeau told High Times that “Health Canada does not collect this information from license holders.” That means there is no way to accurately know exactly how much of and which resources were destroyed along with those 425 million grams of cannabis. This is one area where data collection can be improved both in Canada and the US to better understand how cannabis can be most efficiently grown.

Can Remediation Be Salvation?

You may be wondering, with billions of dollars of cannabis being destroyed every year, who is left in the red? Maxwell says that “Cannabis producers, and their investors are the losers here, and consumers are the winners.” Costs have dropped consistently both in Canada and around the US, where “it is now possible to purchase an ounce of decent weed for just over a hundred bucks.” According to Maxwell, that plummeting price has “almost entirely disrupted the legacy market,” and even growers using artisanal methods to produce premium flower “struggle to achieve profitability due to the glut of product on the market, excise tax issues, and the regulatory cost burden.” 

Anyone familiar with the cannabis industry has likely heard the term “remediation” before, meaning, to remedy something, which can range from methods of reducing contaminants in a product (pesticides, heavy metals) or reducing the THC content of a hemp product to ensure it legally can be sold as hemp. Remediation is a way for cannabis producers to salvage a batch of products that otherwise would be unable to be sold, and would be a massive waste of money and resources. 

Unfortunately, it does not appear that remediation is an option here. “To my knowledge, there is no avenue to direct excess cannabis flower to other product streams,” says Maxwell, “The product must be destroyed as per Health Canada guidelines,” which include incineration, composting, or mixing with kitty litter. “It may be possible for cannabis to be used in other applications,” says Jarbeau, “however, depending on the activity, it could still be subject to the requirements under the Cannabis Act and its regulations as well as requirements under other Acts and regulations.” Those regulations and requirements can be pretty burdensome, to the point where attempts to remediate products might not even be worth it. One bright spot Jarbeau mentioned was that “Certain cannabis plant parts (e.g. mature stalks stripped of their leaves, flowers, seeds, and branches) … are exempted from the application of the Cannabis Act,” and could be remediated into other uses without a license.

Bigger Than Canada, Bigger Than Cannabis

Unfortunately, the problem of widescale product destruction is not unique to Canada or to the cannabis industry. While Canada destroyed 26% of their unsold or unsellable cannabis flower last year, the US destroyed nearly 11% of our hemp crop because it tested “hot,” above the 0.3% THC limit. While 11% is the average, it is much worse in some states, like Tennessee, where the Department of Agriculture reports “42% of crops are being found non-compliant.”

While the reasons are different, the end result is the same, millions of pounds of cannabis and hemp plants being destroyed rather than used to make products, with investors, farmers, and other businesses left in the red. And remember, it isn’t just the cannabis being destroyed here, but all the water, fertilizer, and other resources that went into growing it. On a deeper level, in many cases it is someone’s dream being destroyed as well, with legacy farmers being forced out of the industry they created while being offered insultingly low prices for artisanal quality flower. 

Now that 2022 draws to a close, Health Canada will be compiling their data from this year, and if current trends hold, Canadian cannabis businesses will be destroying around 1/3 of their unpackaged cannabis crop next year. 

Follow Up After Hearing Back from Health Canada

“I didn’t realize that that number represented total cannabis waste destroyed,” says Maxwell. “Cannabis waste is regularly destroyed during the growing process and at harvest. The weight of this waste varies dramatically based on water content. Sometimes waste is destroyed right away, and the weight is mostly water weight. Other times the waste is weighed, then stored until there is a large amount, then weighed again, the discrepancy is justified in documentation as due to water loss, and the dry waste is then destroyed. As you can imagine, with all of these variables, it is not possible to determine which portion of the total waste would be saleable (but unsold) flower, as compared to stem and leaf waste. I would estimate that for every gram of saleable flower, 2 or more grams would be destroyed as unusable byproduct.“It would be much more interesting to know the ratio of finished saleable product produced, relative to the annual consumption in Canada,” Maxwell adds. “This would give a much better insight into the scale of overproduction. I would estimate that the vast majority of finished product that is destroyed is excess product rather than recalled product. I hope this helps.”

Source: https://hightimes.com/news/canada-destroys-a-record-amount-of-cannabis/

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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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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