Business
Delta-8 brouhaha creates marijuana opportunity in next federal Farm Bill
If Congress can’t (or won’t) bundle marijuana reform with the F-35 fighter jet and nuclear submarines, why not food stamps and corn subsidies?
Among the pressing items on federal lawmakers’ 2023 to-do lists is renewing the Farm Bill.
Every five years, the sprawling, multipart, $428 billion monster that deals with nutrition and rural development as well as what American farmers grow and how they grow it is revamped.
And the 2018 Farm Bill that legalized hemp and triggered the boom in delta-8 THC and other intoxicating hemp-derived cannabinoids expires in September.
Federal marijuana prohibition means the American cannabis industry still exists separately from federal farm programs and the U.S. Department of Agriculture.
Despite this, and despite the many other loud and needy lobbies competing for attention, there’s a growing push in Washington DC for Congress to consider marijuana reform during Farm Bill discussions, according to multiple lobbyists and a federal lawmaker who spoke with MJBizDaily.
And the countrywide flood of widely available products containing intoxicating hemp-derived cannabinoids that the 2018 Farm Bill inadvertently unleashed is only part of the reason.
The Farm Bill “absolutely poses a path forward” for otherwise stymied federal marijuana reform, U.S. Rep. Earl Blumenauer, an Oregon Democrat, told MJBizDaily.
That could include the SAFE Banking Act, the bipartisan proposal to prohibit federal banking regulators from punishing financial institutions that do business with state-legal plant-touching marijuana businesses.
Skeptics will point out that past attempts to package marijuana reform measures with broader bills have failed.
December efforts to include the SAFE Banking Act in both an omnibus spending bill and the annual defense spending bill were thwarted by Senate Minority Leader Mitch McConnell and his caucus.
McConnell remains adamantly opposed to tucking marijuana-related provisions into broader bills, Capitol Hill observers say.
But by signing the Senate’s version of the 2018 Farm Bill into law with a hemp pen, McConnell also unwittingly tied himself to the cannabis industry.
It was that law that legalized hemp production nationwide and led to the ongoing product-safety and regulatory controversy posed by intoxicating hemp-derived cannabinoids.
Hemp producers and product makers have proved adaptable and nimble in discovering new intoxicating substances and packaging them into gummies, THCA smokable flower and other products.
Delta-8 and delta-9 concerns
State regulators and law enforcement officers say hemp-derived products are eluding restrictions and regulations and sickening users, including children.
“Impairing, high-potency delta-9 hemp products are in the Alaska marketplace,” Joan Wilson, Alaska’s top cannabis regulator, and Robert T. Carter, the state’s hemp-plan manager, wrote in an October letter to Gov. Mike Dunleavy.
“They are accessible to all Alaskans, including our youth.”
Concerns about hemp-derived delta-8 and delta-9 products is bipartisan.
On Feb. 9, Connecticut Attorney General William Tong mailed warning letters to vape shops and other retailers, advising them that any product with more than 0.3% THC “on a dry weight basis,” regardless of the source material, was illegal to sell without a state marijuana license.
To date, 14 states have banned delta-8 products outright.
But the market has proved adaptable, with new cannabinoids such as THC acetate ester, or THC-O, appearing alongside hemp-sourced delta-8.
And other federal agencies have declared it Congress’ job to clean up this mess.
In late January, the U.S. Food and Drug Administration announced that regulating CBD – another massive industry also created by McConnell’s Farm Bill – was not within its current powers and that a new regulatory framework is needed.
“The agency is prepared to work with Congress on this matter,” the FDA noted.
McConnell’s office did not respond to an MJBizDaily interview request for this story.
But some members of Congress as well as the public recognize that the minority leader bears responsibility for the delta-8 situation – and that the Farm Bill would be an appropriate place to fix it.
“We had a breakthrough in the 2018 Farm Bill, but it didn’t provide a regulatory framework” for intoxicating hemp-derived cannabinoids, Blumenauer said.
“There are real problems,” he added. “That is recognized.
“So I think that coming in and filling these gaps is something that shouldn’t be hopelessly controversial.”
A long, complicated process
The Farm Bill could also be a vehicle for SAFE Banking, Blumenauer added.
That legislation famously passed the Democrat-controlled U.S. House of Representatives in various forms seven times but failed to gain a hearing in the Senate.
A last-ditch push by Senate Majority Leader Chuck Schumer to tack SAFE Banking onto the National Defense Authorization Act failed in December after McConnell opposed it.
Schumer’s office did not respond to MJBizDaily messages seeking comment.
And it’s still unclear how much appetite new House Speaker Kevin McCarthy, a California Republican, will have for marijuana reform.
Crafting the Farm Bill is a lengthy process that generally takes most of a year. The bill technically expires at the end of September, which is the end of the federal fiscal year.
But negotiations can stretch into the following calendar year.
Though it will likely be summertime before substantive decisions are made, initial discussions are underway.
According to NPR, 80% of the Farm Bill funds nutrition programs such as Supplemental Nutrition Assistance Program (SNAP) benefits, also known as food stamps.
Along with clearer regulations governing intoxicating hemp-derived cannabinoids, U.S hemp producers are lobbying for an increase – from 0.3% to 1% – in the allowable THC content before a legal hemp plant becomes illegal “marijuana” under federal law.
“That will make farming cannabinoid hemp much more forgiving,” said Jim Higdon, a co-founder of Kentucky-based Cornbread Hemp, a company that markets CBD products.
“The amount of hemp that has to be destroyed is just ridiculous.”
‘Looking for clarity’
Higdon agreed the Farm Bill could be a likely vehicle for cannabis regulations, such as definitions that clearly state what novel cannabinoids are allowed and to what concentrations.
But “principally, we’re looking for clarity,” he said, including clear permission (or prohibition) on what compounds ambitious chemists are able to extract from hemp – and at what levels they can be included in products available on the marketplace.
One ongoing headache for companies dealing in hemp-derived products is what types of labeling and marketing pitches will trigger a warning letter from the FDA.
Products sold with medical claims – but without the requisite studies or science – appear to be one clear red line.
“We know why our customers are coming for CBD products and for what reasons, but we cannot message those reasons in marketing materials without risking an FDA letter,” Higdon said.
“That just has to stop.”
In a recent analysis of Congress’ starting position on the Farm Bill, Jonathan Coppess, an associate professor at the University of Illinois and director of the school’s Agriculture Policy Program, made no mention of hemp or intoxicating cannabinoid.
Instead, he noted that “much about a farm bill comes down to the politics between federal payments to farmers and federal payments to low-income individuals and households” via SNAP.
But in a twist, the public clamor and moral outrage over delta-8 might play into the hemp industry’s hands.
This also creates opportunity for cannabis at large.
“There was no thought at the time (in 2018) that intoxicating hemp-derived cannabinoids would be permissible in any way in the marketplace, and now an entire kind of gray-market product category has emerged,” said Michael Bronstein, president of the American Trade Association for Cannabis and Hemp, one of the DC lobbies.
“Every day now, I’m reading in a mainstream publication about delta-8 products being sold in gas stations or smoke shops.
“It’s created a lot of regulatory issues that need to be addressed in the upcoming Farm Bill.”
Source: https://mjbizdaily.com/delta-8-brouhaha-creates-marijuana-opportunity-in-next-federal-farm-bill/
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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