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Cannabis MSO MariMed CEO’s sudden death shows need for succession plan

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Mere months before Robert Fireman died suddenly in December, the co-founder and former CEO of Massachusetts-based MariMed shook up the cannabis company’s management team and created a succession plan.

Doing so would prove to be prescient.

After MariMed hired Susan Villare as chief financial officer in May 2022, former CFO and co-founder Jon Levine briefly moved to the role of chief administration officer.

“Then we decided that I would be better off as president of the company, which put me in a position where I can help prepare for any type of succession plan if necessary – not based on Bob’s health,” Levine said in an interview with MJBizDaily, “but based upon the fact that we had to look at all roles in the company and what succession plan would be at all times so that you’re not caught off guard.”

Fireman, who had served as board chair and CEO of the multistate operator since 2017, died on Dec. 11 from complications of a respiratory illness. He was 74.

Image of Jon Levine
Jon Levine

Levine, who turns 58 on March 21, was appointed interim CEO of MariMed, which has operations in Illinois, Maryland, Massachusetts, Missouri and Ohio.

In March, Levine accepted the role on a full-time basis, and Edward Gildea was appointed board chair.

“It actually worked to our advantage because we took that initiative,” Levine said.

“We were fully prepared to make a smooth transition from Bob’s leadership to mine.”

MariMed’s story serves as a lesson to the cannabis industry about the importance of having a succession plan in place.

A 2021 survey by the Society for Human Resource Management showed that 56% of the members surveyed said their organization didn’t have a succession plan.

In addition, 24% of those surveyed said their organization’s succession plan was an informal one.

Startups and succession planning

MariMed, which trades as MRMD on the Canadian Securities Exchange and over-the-counter markets, isn’t the first cannabis company to experience tragedy.

Brett Roper, the co-founder and interim CEO of Denver-based Medicine Man Technologies (which now operates as Schwazze), died suddenly at the end of 2018.

Co-founder Andy Williams was appointed interim CEO in Roper’s place.

Roper had asked the board to start looking for a new CEO in June 2018 because he was planning to transition to a semiretired role.

Justin Dye took over as chair and CEO in 2019, and Williams departed the company in 2020. (A Schwazze spokesperson declined to comment because new management has since taken over.)

In early 2021, Keegan Peterson, the 33-year-old founder and then-CEO of Denver-based payroll and human resources software company Wurk, died suddenly.

Scott Kenyon, formerly the executive chair and a board member of the privately owned company, took the helm of Wurk shortly after.

A 2020 Harvard Business Review story highlighting the need for succession plans at the height of the COVID-19 pandemic notes that smaller companies and startups are particularly vulnerable to losing key leaders.

The thought processes and strategies of founders as well as the niche expertise and skills of management can be crucially valuable and irreplaceable.

“Moreover, when the pool of internal executives is small, boards need to think creatively about back-up plans and ways to divvy up critical responsibilities to ensure business continuity,” one director told the authors.

MariMed reports strong results

While it was a surprise to have to implement its succession plan so quickly after creating it, MariMed’s leadership transition has gone as well as can be expected.

“We’re one of the most profitable and well-managed companies in the cannabis industry,” Levine said.

“We continually have positive cash flow and income. It’s not common in this industry to be able to do that, and that’s because we ran everything lean and mean.”

Last week, the company reported that its revenue grew from $121.5 million in 2021 to $134 million in 2022.

Gross margin was down to 44% in the fourth quarter compared with 50% in the same period in 2021.

In 2022, MariMed’s net income was more than $13.6 million, up from $7.6 million in 2021.

Levine was already intimately familiar with the operations and strategy of the company, having co-created it with Fireman.

The business plan – which included expanding operations in Maryland and negotiating a $35 million loan – was already in place.

Levine describes the late Fireman as his “brother” and said the two business partners and friends balanced each other out, bringing different skills to the table.

Fireman, a former attorney, brought a sharp eye to reviewing documents and legal negotiations.

Levine, who overcame dyslexia growing up, is now working to bring the same level of diligence Fireman would have.

In his closing remarks during MariMed’s latest earnings call, Levine said he’ll honor Fireman’s legacy by staying committed to the family-like culture of the company.

He even compared MariMed to a “Cinderella team” in the NCAA basketball tournament – that is, an underdog that could ultimately rise above the competition.

“I watch our team every day, and I know that we have what it takes to win the championship,” he said.

“In all seriousness,” Levine said, “assuming no delays, 2023 should be another year of accelerating revenue growth, with 2024 reflecting the full impact of all investments we made over the past two years.

As Bob always said, I would encourage you to continue watching the MariMed story.”

Source: https://mjbizdaily.com/marijuana-mso-marimed-ceos-sudden-death-shows-need-for-succession-plan/

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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