Business
Denmark medical cannabis sales mostly on the rise, but pilot program sputters
Denmark’s medical cannabis sales took a breather in 2022 after experiencing consistent growth for half a decade, according to new data from the Danish Health and Medicines Authority.
Overall sales of all medical cannabis products in Denmark grew from about 30.8 million Danish kroner ($7.5 million) five years ago to 64.3 million kroner in 2021, then leveled off at 62.5 million kroner last year – representing a gain of 102% over the whole time period.
The sales data covers the four potential pathways to obtain medical cannabis products in Denmark.
The data shows that sales via the pilot program, which allows the sale of cannabis flower and oil with no proven efficacy, were 8.7 million kroner in 2022, accounting for 14% of medical cannabis sales in 2022.
Consistent with previous MJBizDaily reporting, sales outside the pilot program continued to account for the vast majority of medical cannabis products shipped in Denmark last year.
The category of magistral preparations – which are prepared in a pharmacy and include isolated THC and/or CBD – accounted for 25.5 million kroner last year, or approximately 40% of all sales.
Sales in 2022 of the categories of finished pharmaceutical products with and without marketing authorization were 24.2 million kroner and 4.1 million kroner, respectively.
The data is a reminder for international companies that Europe’s medical cannabis industry tends to be more pharmaceutical and efficacy-orientated, whereas, in North America, the medical cannabis industry, including government regulations, tends to prioritize access and economic opportunity.
“And this is entirely natural, given the stage we (Europe) are at as an industry and in development. The standard here is EU-GMP (production),” Jeppe Krog Rasmussen, CEO of DanCann Pharma, a therapeutic cannabinoids company in Ansager, told MJBizDaily via email.
Pilot sputters
Sales of medical cannabis through Denmark’s pilot program peaked in the second quarter of 2019 – about a year after it started – at 5.7 million kroner and never fully recovered.
In the fourth quarter of 2022, only about 16% of total revenue generated by medical cannabis sales came from the pilot program, government data shows.
That’s down from mid-2019, when transactions in the pilot represented roughly 40% of the country’s total sales.
Morten Snede, CEO of Medican, a medical cannabis company headquartered in Helsinge, suggested one of the reasons for the low uptake of the pilot was that Danish authorities are slow to approve new cannabis products.
“The Danish Medicines Agency has been very, very, very slow in the product approval of new products so the availability of alternative products to Bedrocan has been close to zero,” he told MJBizDaily via email, referring to the Dutch medical cannabis company.
MJBizDaily previously reported that, as of 2020, only eight of the 63 applications to admit products to Denmark’s medical cannabis trial scheme had won approval from regulators.
Currently, only eight medical cannabis products have approval for sale within the pilot program by six producers, including Canada’s Aurora Cannabis, the Netherlands’ Bedrocan and Australia’s Little Green Pharma.
Snede also notes that the different reimbursement rules in Denmark for the four tracks factor into patient uptake, adding that the pilot program is limited to a maximum reimbursement of 50% of the cost, or up to 20,000 kroner ($2,880) per year.
“The result is most patients cannot afford to continue the treatment during the year,” he said.
“With the other tracks, reimbursement can be much higher.”
Some industry players are optimistic the pilot, which was extended to 2026, still has better days ahead.
Peter Emil Sigetty, CEO of Valcon Medical A/S – a medical cannabis producer located in the greater Copenhagen area – said he expects to see growth in the pilot program throughout this year and “especially” in 2024.
“There has only been a very limited number of products available under the pilot program in the past five years,” said Sigetty.
“It takes time to register a product in Denmark, and the quality requirements are high.”
Challenges
Fleta Solomon, CEO of Little Green Pharma, said the local market faces several challenges, including:
- Medical cannabis prices are too high.
- There aren’t enough products to choose from.
- Not enough doctors have studied medical cannabis.
- A lack of guidelines from the doctors’ association, but the Danish Society for Clinical Cannabis Medicine is working on new guidance.
Little Green Pharma acquired a fully-operational greenhouse in Denmark from Canada’s Canopy Growth in 2021.
The company’s Billinol “LGP” was the first locally produced cannabis product approved for sale in Denmark.
“Traditionally in Denmark, medical care is essentially free; however medicinal cannabis is only partially reimbursed,” Solomon said.
“Denmark is certainly at the beginning of its journey, and while there are a few key advocates, there is a long way to go.”
“Interestingly, Denmark recently overtook Holland as the largest exporter of cannabis to Germany (after Canada). Bedrocan recently announced it is building a facility in Denmark. And Aurora’s only profitable part of the business is out of Denmark,” she said.
“All of which suggests Denmark is likely to be the leader in Europe.”
Potential solutions
Rasmussen, the CEO of DanCann pharma – which is a leader in the Danish industry via its subsidiary CannGros ApS – said the pilot program won’t take off unless key changes are made.
Some solutions include:
- Better processes that ensure more products are brought to market.
- Improved subsidy conditions for patients, ensuring there is no difference in the healthcare system between different treatments.
“There is no doubt that approved and marketed products, as well as magistral products, continue to gain ground,” Rasmussen said.
“This is due to the enormous lack of breadth and depth in the product portfolio under the pilot program with medical cannabis, as well as the responsibility borne by physicians in this regard.”
Rasmussen said doctors are far more likely to prescribe approved products, which also come with a financial subsidy that makes it more manageable for patients, “given the still very thin subsidy line for the pilot program with medical cannabis.”
Using Denmark as export hub
Some companies say Denmark’s business-friendly regulations and agritech expertise make the country a suitable hub for medical cannabis exports.
The proximity to Germany offers advantages. But the import market in Germany and elsewhere remains small, while the number of prospective medical cannabis exporters grows by the day.
To help facilitate domestic production, in 2021 the Danish government made permanent the ability for businesses to grow cannabis for medical use.
Sigetty, the CEO of Valcon Medical A/S, said the company’s focus is on both the export and domestic market. Among other things, the company exports white label products it manufacturers.
“The medical cannabis industry in Denmark continues to be among the frontrunners in Europe,” he said, making it suitable as an export hub.
“The industry consists of a strong ecosystem, with various companies across the value chain. There’s also an industry association representing a large proportion of the registered companies. These conditions support a stable platform for an international operation.”
Government support
Denmark is keen to promote itself as a destination for international businesses to set up shop, including cannabis businesses.
To that end, the government organization Invest in Denmark facilitates investment through general and specific efforts, according to Derek Light, special advisor for the Ministry of Foreign Affairs.
Medical cannabis is one of approximately 25 subsectors the agency prioritizes.
Its services include:
- Matchmaking and introductions to local stakeholders.
- Information provider on general framework conditions and specific industry insights.
- Guided fact-finding missions.
- Assistance with site selection – though not in all cases.
- Hosting events to connect investors and partners.
- Hosting events to highlight aspects of the industry.
Invest in Denmark does not offer grants, subsidies, or specific advisory, nor does it engage in advocacy to address regulatory requirements.
It does, however, provide periodic input to Danish government regulators on the state of the industry, along with other public agencies.
A counterpart organization within the Ministry of Foreign Affairs, the Trade Council, supports export promotion and market entry strategies in markets across Europe and further afield.
Any company based in Denmark, including companies in the medical cannabis industry, can engage with export advisors based in local Danish embassies in other countries to develop tailormade services to support exports and market entry. This includes:
- Partnership identification.
- Sector monitoring.
- Regulatory advisory and dialogue with authorities.
- Marketing and market development activities.
Source: https://mjbizdaily.com/denmark-medical-cannabis-sales-mostly-on-the-rise-but-pilot-program-sputters/
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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