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Curaleaf’s Curious Cannabis Industry Status

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Curaleaf—a major cannabis company in the U.S. with international expansion on its drawing board, has a few bubbling controversies that will just not die.

Curaleaf is currently the dominant U.S. cannabis company by market share. By design, the company has entered state markets (and increasingly international ones like Germany) where the barriers to entry are high. This is how it protects its position.

No matter its omnipotence, however, the scandals surrounding the company keep coming—including this summer—and there are some who are wondering about the ability of Curaleaf.

It could be that this new scrutiny is merely part of the reflected media glare on the cannabis industry in general thanks to both advancing legalization globally, not to mention the recent implosion of Juicy Fields. Indeed the deets on the self-destruction of the crowdfunding, e-growing company continue to be satisfyingly “juicy,” including recently revealed connections to German aristocracy to blood the hounds for more.

In part such scrutiny is also occurring because it is clear that the stakes are increasingly higher. It is also clear that no matter how enthusiastic one is about cannabis reform, the sleezier side of the industry to date has still not dissipated in any large measure.

No matter the reason, this summer’s sudden interest in cannabis scoundrels seems a bit like a repeat of the purging seen in 2019—of executives if not the companies themselves—and which affected large and supposedly indomitable companies including CannTrust and Canopy.

Whatever the immediate trigger, Curaleaf’s PR department has their work cut out for them.

Source of Funds: The Russian Connection

Sources of funding are increasingly an issue for the industry. In part this is because of the spectacular flameouts so far of other “innovative” strategies to raise cash. It is also because legalization creates a mandate for much cleaner sources of finance.

This is one of the biggest liabilities that Curaleaf faces. Here is why.

Curaleaf’s owners have long-standing and significant Russian roots. The rumors that they were facing sanctions this spring after Russia invaded Ukraine were rampant on social media (even though not true).

Here is what is not disputed. Company founders Boris Jordan and Andrey Blokh have had long standing business relationships with both Putin and sanctioned tycoon Roman Abramovich. Even if no direct link between these men and their cannabis endeavours can be traced to Russian oligarchs specifically, there are still plenty of questions about the source of funds behind the company. According to some experts, every business with historical financial links to Russian money should be looked on with suspicion (no matter the vertical). Oligarchic capital, as it is known, flows everywhere, and it is very possible that it has made its way into the global cannabis industry, even if not at Curaleaf.

That said, the company has been the target of this kind of allegation since Barron’s published the same in 2018. No matter how many assertions both Jordan and Blokh have made about their dual citizen status or their American patriotic leanings, the reality is that both men have been able to stay in business in the country even after Putin began to assert state authority over the private sector.

Those who oppose the company say that choosing Main Street cannabis over Wall Street cannabis is the only way to really drive such influences from the industry. Given how the state market (and now Europe) are proceeding with legalization, the mom-and-pop side of the industry is absolutely under threat from international pools of cash looking for profitable niche markets to invest in.

Labelling Problems

The company’s reputational issues do not stop with its founders, however. Its operations are increasingly in the spotlight, if not landing the company in court. And it is not a good look, specifically because it points to (at minimum) shoddy production standards. Specifically, in 2021, reports emerged that Curaleaf’s Select CBD brand contained psychoactive Delta 9 THC. The company claims that a single batch of products with THC was mislabelled. No matter the cause or whether it was one batch or multiple ones that were affected, hundreds of consumers became sick, including an Idaho man who suffered stroke-like symptoms before dying several weeks later.

So far, Curaleaf has settled 10 cases but not the wrongful death suit. Beyond this a new class action looms for the company from those whose claims have still not been addressed.

The problems do not stop here. Curaleaf is also entangled in a web of lawsuits regarding a failed CBD company.

It is also facing legal action for violating labour law in several U.S. states—and for particularly egregious infractions that appear to indicate that management, much less the founders, do not care about the welfare of either consumers or employees. Specifically, the company now stands accused of illegally collecting employees’ tips in violation of the Fair Labor Standards Act (FLSA)—an Illinois state law. In Massachusetts, the company was found to have violated labor laws when it tried to prevent employees from unionizing.

With all these reputationally damaging legal problems, there are also many, including investors, who are wondering if the company will manage to survive all of these problems. While Curaleaf certainly has raised a significant amount of cash, the vast majority has been spent on acquisitions. Even though the company continues to perform well financially—revenue was up 20% year-over-year for the first quarter of this year and operating income increased 21%—there are clearly clouds on the horizon, and all take cash to solve.

The Google of Cannabis?

Since the beginning of legalization, there have been wildly successful entrepreneurs who have carved a piece of history (if not a great deal of money) out for themselves with a vision to monopolize the nascent industry. However, no matter how big and bad they get, this is no guarantee of legitimacy, much less longevity or market control.

Canopy Growth, for example, blew into the European market in the middle of the last decade with bravado and bucks to spare. Yet within a few short years, they had failed to gain a German cultivation license, sold many of their earlier acquisitions, and saw several waves of exits for senior management starting with the firing of founder Bruce Linton by the board. This March it was delisted from the S&P/TSX 60 Index. Its stock has fallen 90% since it was added to the index in the spring of 2019.

The reality is that when full and final legalization comes, the rules of the road, which tend to favor Mad Max rather than Mr. Roger’s Neighborhood, begin to weed out those who cannot make a transition to legitimacy.

The trap doors are everywhere.

It may be that this summer, both investors and consumers, if not regulators beyond that, begin to make other choices.

Source: https://hightimes.com/business/curaleafs-curious-cannabis-industry-status/

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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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