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Canadian companies piloting sustainable cannabis packaging service

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Image of a circular cannabis shipping case

A circular cannabis shipping case from Apical Ethical Cannabis Collective and Friendlier is meant to be reused multiple times. (Photo courtesy of Apical)

A Canadian consultancy is piloting an environmentally friendly cannabis packaging service with an eye to reducing waste by reusing wholesale packaging many times instead of recycling or throwing it away.

Unlike many other green cannabis packaging initiatives, the reusable, or circular, master pack prototype from Apical Ethical Cannabis Collective – an environmental, social and governance (ESG) consultancy – involves packaging for wholesale shipments from producers to distributors or stores.

Looking ahead, Apical CEO Mika Unterman aspires to reusable consumer cannabis packaging.

“I think reuse can be implemented and be profitable and be successful at both levels of the supply chain,” she told MJBizDaily.

Unterman said starting with business-to-business packaging is a lower-risk way to test collection and reuse infrastructure and the associated costs, since Canadian consumer cannabis packaging is subject to significant regulatory requirements.

Pilot project launched

The circular master pack works as a so-called product-as-a-service, applying a scannable QR code to corrugated cardboard shipping cases.

Retailers scan the code to schedule a pickup of empty packaging cases.

The packaging can then be reused – up to 12 times, according to Unterman – until it’s worn out and needs to be recycled.

“The financial feasibility is based on a very conservative model of only four uses,” she said.

On top of reducing waste, Unterman said the reusable master pack can:

  • Reduce producers’ packaging costs compared to single-use packaging.
  • Provide useful data via the scannable code on retail product distribution such as “how long it takes to deplete a specific amount of inventory.”

“Even though the master packs right now are not terribly exciting in terms of visibility to the consumer, it is the first step into a reuse economy, or a circular economy, where our goal is not to figure out what to do with our waste but eliminate it altogether,” Unterman said.

To manage logistics, Apical has partnered with Ontario company Friendlier, which provides reusable takeout containers – and the infrastructure to reuse them – to food-service businesses.

Apical and Friendlier launched the pilot project in Ontario, and three cannabis producers are participating so far.

The pilot project for wholesale shipments “allows us to test that infrastructure before we pivot and launch into consumer plastics, which is where the real game-changing applications are,” Unterman explained.

Specifically, she said the pilot aims to answer several questions:

  • “What is the return rate from the retailer – how easy is it for us to get them engaged and part of the return process?”
  • “What is the life span of a low-value asset, meaning, how many times can we reuse the corrugated cardboard currently in circulation?”
  • “And then, based on those two things, what is the (return on investment)? How much money can we be saving (licensed producers) by reusing their packaging?”

Unterman believes reusable cannabis shipper packaging has not been done in the U.S. or Canada before.

“In Europe, it’s a little bit more established, in that reuse – especially at the shipper level – is done pretty commonly,” she said.

Apical and Friendlier’s prototype collaboration has received a 20,000 Canadian dollar ($14,500) grant from the Circular Opportunity Innovation Launchpad, a business accelerator funded by the regional development agency Federal Economic Development Agency for Southern Ontario.

Apical has applied for more funding.

Circular consumer packaging more complex

Jacob Policzer is director of science and strategy at cannabis industry sustainability standards certification company The Cannabis Conservancy, which is unaffiliated with Apical’s circular packaging project.

Policzer told MJBizDaily he knows of a smaller-scale circular packaging initiative by a company that incentivizes customers to return containers for reuse.

But a circular packaging service for multiple companies overseen by a third party “is definitely new in the cannabis industry.”

He said many cannabis companies focus on sourcing environmentally friendlier packaging materials “because it’s an easier win, and you don’t have to worry about the logistics of collecting, inspecting, sanitizing, cleaning, getting it back in there.”

“Ocean plastic is better than regular plastic, or post-consumer material is better than virgin material,” Policzer explained.

“But it’s also going to be ending up in the landfill or the recycler, whereas (circular packaging) is trying to keep it out of that process.”

Policzer said he supports Apical’s circular packaging concept, although he has some questions about how the business-to-business packaging might work, including:

  • Whether the same boxes can be used to ship differently sized cannabis product packages
  • How well the system can accommodate seasonal demand spikes around events such as 4/20.

Policzer believes achieving a circular cannabis packaging economy for consumer packaging would require some “education and behavioral transition” for consumers accustomed to convenience.

“Having people collect it and either send it back or return it somewhere, I think is going to be the hardest lift for consumer involvement,” he said.

Reducing producers’ environmental footprint

Nova Scotia cannabis producer Aqualitas already uses various kinds of sustainable packaging for its consumer products, including ocean-sourced reclaimed plastic.

The aquaponic grower is participating in Apical’s pilot project for its adult-use shipments to Ontario, and Aqualitas CEO and co-founder Myrna Gillis told MJBizDaily that its first shipment of more than 200 reusable cases has already arrived in Ontario.

“A big part of our brand promise is that we are a company that is sustainable and renewable and tries to support the full circle in how we produce, but also in how we get the product to the consumer,” Gillis said.

The data-collection aspect of the circular packaging program is not the only way for cannabis producers to track shipments to stores, Gillis added.

For example, she said Aqualitas researches retail websites to see who’s carrying their products and then gets data from the Ontario wholesaler.

“But this is another opportunity to engage with retailers and know where your product is and how quickly it’s moving through the stores.”

Ontario grower Carmel Cannabis is also focused on sustainable consumer packaging, using post-consumer recycled mylar pouches and packing pre-rolls in recyclable glass tubes with cork tops, said founder Roey Fishman.

“When we heard that this could be an idea to reduce our overall footprint – not just obviously for the customers but just holistically as a business – we thought it was a great idea,” he said.

Fishman said Carmel’s existing branded shipping cases “didn’t exactly fit with what was proposed (by Apical),” but Unterman found a way to use the company’s current cases.

“In the pilot project, something that’s really interesting to us is to see how many times we can use one master case over and over again,” he said.

Shipping cases are not “a significant cost contributor” for Carmel, Fishman added.

“So, for us, this initiative was really about trying to find any way possible to reduce our footprint,” he said.

“And also to participate as much as we can in a circular economy, which in our industry has proven quite difficult overall.”

Source: https://mjbizdaily.com/canadian-companies-piloting-sustainable-cannabis-packaging-service/

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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