Business
‘Croptober’ pushes Canada’s cannabis inventories to record 1.4 billion grams
Canadian cannabis cultivators produced a record amount of marijuana during last fall’s “croptober” – when most of the outdoor harvest comes in – despite falling retail prices and already-bulging inventories.
Cannabis produced in September, October and November 2021 totaled 561,459 kilograms – or about 560 tons – of dried cannabis, bringing the total amount stored by licensed producers, wholesalers and retailers to 1.4 billion grams (roughly 1,543 tons) as of the end of November, according to new Health Canada data.
The data suggests Canada’s cannabis industry still suffers from a serious supply-demand imbalance, even after major greenhouse closures and insolvencies.
Last year, prices declined for every cannabis product category, partly because of overproduction.
Among the 1.4 billion grams of dried cannabis in inventory are 1.26 billion grams of unpackaged flower.
Most of that product is thought to be unsellable for various reasons, including poor quality or low THC scores.
New production in 2021 totaled at least 1.6 billion grams, a figure that continues to rise as more companies enter the cannabis industry than leave the sector.
“Despite significant M&A activity and consolidation within the group, flower sales are becoming more dispersed as a result of more companies competing in the flower category,” Pablo Zuanic, an analyst with New York-based investment banking firm Cantor Fitzgerald, wrote in a recent note to investors.
Zuanic noted that more companies than ever are competing in the dried-flower category, which accounts for about three-quarters of cannabis sales in Canada.
In the second quarter of this year, 126 companies were competing in the category, up sharply from 87 in the second quarter of 2021 and 53 in 2020, the analyst wrote.
Consolidation and restructurings have barely slowed the number of new companies entering the ultracompetitive market.
As of July, there were 886 licensed cultivators, processors and sellers under Canada’s Cannabis Act.
One year ago, there were 730.
In 2020 and 2019, the numbers were approximately 440 and 206, respectively.
Improved efficiencies
In addition to more producers, Bill MacDonald, professor and coordinator of Niagara College’s Commercial Cannabis Production program, suggested inventories might still be rising because licensed producers are getting better at growing marijuana at scale after struggling in the early years following the launch of the country’s adult-use market in 2018.
“What I think is happening is the ones that are producing are getting a handle on how to produce, and they’re getting higher yields,” he said.
“So even though you close down a bunch (of greenhouses), the ones that are remaining are learning from their mistakes, they’re getting better growing techniques.”
MacDonald expects to see more closures in the coming months and years.
“There’s just so much (inventory) out there,” he said.
MacDonald said the overproduction by large producers threatens the survivability of small and midsize growers.
“The smaller players are producing great product,” he said, “but it’s hard to compete when prices have been pushed so far down due to the large inventories. I hope the micros can hang on.”
More licensed space
Canada had more licensed outdoor growing area than ever last year, but industry sources expect to see a rightsizing as the economics for outdoor production become less and less appealing.
According to Health Canada’s latest data, licensed outdoor growing area rose to a record-high 713 hectares, or 76,746,681 square feet, as of the end of 2021.
“What we’re going to see this year is a reduction in the amount of harvests around ‘croptober,’ because some people have definitely pulled back and they’re recognizing that market sales have not been great enough,” said Av Singh, cultivation expert at Nova Scotia-based Flemming & Singh Cannabis.
“We just don’t need to produce as much outdoors as certain folks were doing.”
Federally licensed indoor and greenhouse growing area for marijuana, by contrast, fell to 18,908,337 square feet, which is 21% lower than the all-time high reached in mid-2020 of 23,865,914 square feet.
However, that is also thought to be too much space to accommodate a market the size of Canada’s.
The overproduction is continuing to an ever increasing amount of product that must be destroyed because it can’t be sold.
Canada’s federally regulated producers destroyed 425 million grams – or 468 tons – of unsold, unpackaged dried cannabis last year. That compares with 279 million grams of destroyed product in 2020 and 155 million grams in 2019.
Additionally, more than 7 million packages of adult-use marijuana were sent for destruction across the country in 2021.
Singh said the industry’s stewards of capital are still broadly misallocating resources, resulting in the country producing way more cannabis than it needs.
“The bias is still around poorer quality product,” he said.

Extract price pressure
Singh said most of the outdoor production that doesn’t go straight into semipermanent storage goes into extract products such as vape pens.
He said a comparatively small number of growers are producing outdoors for the dried-flower market.
That could mean the impact from the recent “croptober” overproduction on the overall dried-flower market will be muted.
Where prices could see further downward pressure is in the extracts category, especially vape products.
“Sellable flower should be happening from product produced in greenhouses and indoor, so the huge amount of new (largely outdoor) inventory should not influence sellable flower (prices),” Singh said.
He said companies producing extracts with more expensive inputs from indoor and greenhouse material would be at a competitive disadvantage compared to companies using more abundant, and cheaper, outdoor cannabis for their extracts.
Source: https://mjbizdaily.com/croptober-pushes-canadas-cannabis-inventories-to-record-1-4-billion-grams/
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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