Business
Cannabis Sales in Colorado Have Fallen for 11 Straight Months YoY, Should We Be Concerned, Yet?
Are we seeing cannabis saturation between the legal and illegal market suppliers?
Cannabis Sales Falling in Colorado, should we be concerned?
There’s an alarming trend happening in Colorado and we should all be paying attention. For the most part, the cannabis industry has been the outlier in the global market place as it continued to grow in size and revenue during the pandemic. Is the cananbis market getting saturated, already?
Where other businesses were crushed under the global stagnation the cannabis industry kept on seeing more revenue come in, creating new markets, and seemingly being integrated on a global scale.
However, the world has been in a state of pseudo-lockdown for the past two and a half years and we’re now beginning to see the fruits of that action. Some might claim that these lock downs were necessary due to the Covid-19 Pandemic. Considering that almost 3-years in, there have been 6.3 million fatalities globally (as of writing this article) out of a global population of 7.9 billion people (and counting)
While the loss of life due to the virus has been significant when you look at it from the individual perspective. People lost family members and friends to the virus, and their loss should never be diminished. Yet simultaneously society needs to evaluate the macro effects of current social restrictions that the world is enduring.
Statistically speaking, the total deaths of Covid has claimed the lives of 0.0797% of the world’s population with the median age of death ranging from 73-years and older depending on the population data you’re looking at.
The reason why looking at the problem from this perspective is important is because as society remains in a state of uncertainty, where a lockdown or a mandate could impede free moving commerce – every institution and business is bleeding money.
Couple this with high inflation and a devaluation of the currency, you will begin to see the economic impacts take toll in all sectors of society.
Perhaps even cannabis is no longer inoculated against this type of economic turmoil as Colorado’s latest financial statements on the industry showed.
A Westword.com article reveals;
Colorado dispensaries broke marijuana sales records in 2021, bringing in over $2.2 billion. Sales volume and wholesale marijuana prices began falling last summer, however. April 2022 was the eleventh straight month of falling dispensary sales on a year-over-year basis, while the price of wholesale marijuana flower fell over 46 percent on average from January 2021 to April of this year, according to the state Marijuana Enforcement Division. – SOURCE
The article also outlined how dispensary owners saw up to 20% drop on their sales on 420, compared to their previous year earnings. But what could be the reason behind this? Is this a part of the pandemic’s relentless toil on consumers that now they have to choose between essentials like food over products such as cannabis, or could there be another reason?
Perhaps, regulations?
Farewell Buddy Boy…
“The bigger they are, the harder they fall,” says John Fritzel, owner of Buddy Boy, a chain of dispensaries in Denver Colorado. “When you’ve got that kind of overhead, you just can’t keep that going. We would love to, but there’s not enough capital in this market. If there was a ray of light and the numbers were improving, we would have tried.” – Source
In another Westword.com article, this time talking about the closure of a chain of dispensaries, the article points out that Fritzel believes that the decline came from a new law that went into effect on January 1st.
This law limited the purchasing amount daily allotted to consumers to only 8 grams. Previously medical marijuana patients could purchase up to 40 grams per day. In the case of Buddy Boy, this was 90% of his revenue stream.
During the first four months of 2022, the Colorado industry didn’t even break a $100 million in revenue, which was 43% worse than the year before. However, there was a general trend in reductions over all sectors of the cannabis industry, from wholesale prices and consumer demand.
“With the new regulations at the first year cutting daily allowable concentrate limits by 80 percent, as well as all of the inflationary conditions and overall market retraction, it was just too much,” Fritzel notes. – WestWord
From a consumer perspective, if the state limits the available amount of concentrate – you simply would turn to the streets. Cannabis isn’t like other products where the state has a monopoly on production. Rather, it’s a decentralized crop and anyone with a bucket, dirt and water can grow it.
Therefore, when the state creates restrictions in consumer options they force the consumer to the black market. However, Fritzel also believes said;
“There are going to be hundreds of [marijuana businesses] gone. They’re already closing. The industry as a whole, unless you’re in a limited license market, is really struggling,” he notes. “The novelty is wearing off.”
This is also an important detail to observe. Colorado has been actively selling cannabis recreationally for 10 years now. The novelty has worn off. Cannabis is simply “something you do”, which means that the consumer has caught up to the industry.
They now hold the purchasing power because the market has saturated to the point where there are “plenty of options”. This means that the businesses with the deepest pockets will be able to survive at the lowest price point.
Buddy Boy, unfortunately, didn’t have the deep pockets of Wall Street backed businesses. And as people invest into the market place, they provide a different level of service, usually at a competitive price point.
Unless you limit licensing or create mechanisms and tax deductions for local businesses – the money machine will gobble up the market as it does everywhere. Yet even Fritzel alludes to the introduction of this article…the global economy has gotten more expensive.
“The prices of everything we need to use as a business have gone up while the price of everything we sell as a business has gone down. We’re not seeing less foot traffic, but the average ticket price is dramatically down, and the prices are so low,” Fritzel adds.
When you take a reduction in wholesale prices, coupled with over saturation in a marketplace, then turn up the heat with hyperinflation due to global geopolitical policy – you’ve got the perfect recipe for mass foreclosure.
Thomas Mitchell, the author of the article in Westword concludes;
Dispensary takeovers have occurred at a high rate over the last two years, but permanent closures were rare in Denver until recently. Mile High Green Cross, a Capitol Hill dispensary under the Pure Greens ownership group, was closed in May to make room for another Pure Greens-owned store, La Conte’s, in the same neighborhood. A month before that, Colorado dispensary chain Bonfire Cannabis closed its medical marijuana dispensary in Denver after the company couldn’t secure a recreational sales license.
Which leaves us with a bitter taste in the mouth.
The calm after the storm…
When you’re going through intense moments in life, or in this case as a global society – much of what we know will go the way of the dodo. However, this is only because there is a major shift occurring within the whole fabric of society – from our spiritual affiliations to how we make our money. If you’re reading this article and think, “Man, we’re so screwed!” you’re right!
I personally believe that the world will probably get a little darker before the light comes. However, it’s in times like these where community is important. It is one of the greatest strengths of humanity. However, we are being forced to isolate and hide ourselves behind loose-fitting cloth masks pretending that it can protect us from an invisible threat.
While it’s noble to wish to accommodate the whole world to cater to the most vulnerable – at one point we’re going to have to weigh out the cost/risk benefit to society by attempting to protect the 1% at the expense of the 99%.
The cannabis industry readjustment in Colorado cannot be entirely blamed on the pandemic. However, the rising cost of living is forcing business owners to cut back, and that typically means letting go of hundreds or even thousands of employees.
Employees that would be relying on government money to get another job…in a market that is unloading employees. As the cycle continues and if we’re not very careful – could be a recipe for disaster.
Only by coming together can we weather the coming storm, and once we’re through it and the dust settles…we’ll be living a complete new dynamics. How good or how bad is entirely up to us.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
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.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
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.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
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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