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Connecticut adult-use marijuana sales set to start with big opportunities, few operators

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A handful of medical marijuana dispensaries in Connecticut on Tuesday will expand into adult-use retail, establishing another new market on the Eastern Seaboard with sales expected to hit at least $300 million this year.

The state’s adult-use market, dominated by multistate operators, will open with only 13 cannabis companies of any kind licensed to take part in Day One sales, one of the smaller cohorts among U.S. recreational launches.

Dispensaries expect an initial surge in demand, reflecting customer enthusiasm, novelty factors and limited retail access.

Some stores are a 30-minute drive or longer from their nearest competitor.

“A deluge is coming, and we expect hundreds of thousands more potential customers plus whomever might come from neighboring states,” said Benjamin Zachs, CEO of Fine Fettle Dispensary, which has converted three of its four medical marijuana licenses into hybrid retail permits to serve recreational consumers.

Connecticut is the third East Coast state to usher in adult-use sales in just over a month, following New York’s Dec. 29 opening and Rhode Island’s Dec. 1 debut.

Recreational sales this year in Connecticut are projected to reach $300 million to $375 million, growing to $650 million-$800 million in 2026, according to the 2022 MJBiz Factbook.

Prepping for a new day

To ensure smooth transactions and an enjoyable shopping experience, Acreage Holdings implemented several initiatives at The Botanist in Montville, the multistate operator’s first dispensary to launch adult-use sales in Connecticut.

“We’ve added more point-of-sale terminals, reconfigured the lobby layout and dispensary flow, hired more employees, doubled our parking availability and so much more,” said Dennis Curran, chief operating officer of New York-based Acreage.

Acreage plans to convert its sister locations in Danbury and South Windsor to recreational stores later this year.

Fine Fettle has been prepping its dispensaries for weeks for a rush of new customers on opening day.

Efforts included hiring about 100 employees and adding several registers in each location, according to Zachs.

Its dispensaries serve about 9,000 medical marijuana patients in Connecticut, roughly 20% of the total market.

In one of several regulatory policies aimed at mitigating product shortfalls at rollout, sales to adult-use consumers will be limited to a quarter of an ounce of cannabis flower or product equivalent.

Massachusetts-based MSO Curaleaf Holdings, which operates four MMJ dispensaries and has a cultivation license in Connecticut, has applied to convert two of its stores to hybrid retail.

“We hope to begin adult-use sales in Stamford in the coming days,” CEO Matt Darin told MJBizDaily.

Though Curaleaf dispensaries will initially be omitted from the adult-use market, all seven of the state’s licensed recreational retail stores will carry its products, according to Darin.

“These products include Curaleaf flower and pre-rolls as well as Select Cliq, our proprietary vape hardware system, and Select Squeeze, our fast-acting THC-infused beverage enhancer,” he said.

High cost of admission

Connecticut retailers and marijuana producers might face the highest premiums in the country to convert their medical marijuana licenses to hybrid retail operations.

Dispensaries are charged a $1 million fee and producers a $3 million fee, though those rates could be cut in half if businesses agree to form separate joint ventures with two social equity applicants, an allowance that includes two additional licenses.

Most, if not all, cannabis business license applicants in Connecticut are expected to take this option, industry sources and operators told MJBizDaily.

The initial rollout includes only four producers – a catchall term for vertically integrated cultivators and manufacturers in Connecticut – which is the same number of licensees that were selected in 2014 to supply the state’s medical marijuana program.

Three of them – CT Pharmaceutical Solutions (now known as CT Pharma), Curaleaf and Theraplant – still operate under the same or similar names.

Theraplant and CT Pharma were acquired in 2021 by The Greenrose Holding Co., a special purpose acquisition company (SPAC), and Chicago-based Verano Holdings, respectively.

Connecticut’s high compliance costs could further jeopardize Greenrose’s financial position, which has teetered for well over a year.

The SPAC, in recent SEC filings, disclosed it missed a quarterly financial reporting deadline, broke credit agreements and needs “substantial additional capital” to fund ongoing operations.

Greenrose did not respond to inquiries from MJBizDaily.

“It’s something we’re aware of and monitoring,” said Kaitlyn Krasselt, spokesperson for the Connecticut Department of Consumer Protection (DCP), the state’s chief cannabis regulator.

The state has 26 cultivators in the process of establishing operations as well as a handful of micro-cultivators, she added.

“I don’t think we have a concern about the supply,” Krasselt noted.

Preserving the medical market

Meanwhile, Still River Wellness is doubling its retail space to about 2,500 square feet in anticipation of attracting a much larger customer base.

The company serves about 2,000 medical patients at its Torrington dispensary in northwest Connecticut.

Though Still River Wellness was approved a few weeks ago to sell recreational marijuana, ongoing construction to build and parse out that operation from its medical marijuana store will likely push its first adult-use sale to early February.

“Basically, two centers all in one,” Still River Managing Partner Thomas Macre said.

As part of Still River’s MMJ preservation plan – a state requirement aimed to maintain product supply and seamless transactions for medical patients – the property will feature separate parking lots, entrances, reception areas and points-of-sale.

Macre doesn’t expect many of his 300 or so daily medical patients to switch to recreational consumers, a common development in other markets.

“I don’t think that’s going to decline very much because of the product availability, the allotments and taxes,” he said.

“Most of these medical patients are here daily. I don’t see them transferring over to the adult side.”

Under Connecticut’s adult-use program, THC is capped at 30% for flower and 60% for all other cannabis products –  restrictions excluded from the medical market.

Other marketplace distinctions include:

  • Products administered like medicine, including capsules, pills, suppositories and under-the-tongue sublinguals, are prohibited for recreational consumers.
  • Medical marijuana products are tax-free, and the state plans to eliminate the $100 fee for MMJ patient cards, regulators told MJBizDaily.
  • Recreational marijuana consumers can possess up to 1.5 ounces of cannabis product; medical patients can possess up to 5 ounces.

“Preserving the medical market was definitely top of mind for DCP as well as the lawmakers in Connecticut when they were crafting legislation,” Krasselt said.

“Our medical market has been in existence for a little over 10 years, and we have a little more than 50,000 patients who come to rely on that medicine.”

Sales in Connecticut’s MMJ market this year are expected to hit $175 million to $215 million, according to MJBizDaily projections.

Supply and demand

By law, Connecticut couldn’t open its adult-use market until regulators approved at least 250,000 square feet of growing and manufacturing space held by its four existing medical marijuana producers, an affirmation that came only a month ago.

That mandate, like the transaction limit, was implemented to ensure product availability in both the medical and recreational markets.

In preparation for the Jan. 10 launch, CT Pharma increased its SKUs (stock-keeping units) and production capacity for flower, pre-rolls, vapes, concentrates and edibles, according to Rino Ferrarese, executive vice president for Verano’s Northern Region. Verano also operates two Zen Leaf dispensaries in the state.

“We have expanded our cultivation areas, invested in additional automation, redesigned product packaging and labels to meet the new adult-use regulations, and implemented Connecticut’s new seed-to-sale tracking system,” he said.

Curaleaf expanded its edibles production capacity and stockpiled inventory to ensure ample supplies for existing medical patients and new adult-use consumers.

“We are also in the process of expanding our processing and production facility, which is scheduled for completion by the end of Q1,” Darin said.

Fine Fettle is tripling the amount of inventory at its recreational stores in Newington, Willimantic and Stamford, which is located near the New York state line.

“We expect it to be busy, so we’re stacking up on a ton of inventory from the producers and getting ready for what we expect to be pretty good demand,” Zachs said.

Source: https://mjbizdaily.com/connecticut-adult-use-marijuana-sales-to-start-with-big-opportunities-few-operators/

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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