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European cannabis execs would welcome German trial legalization program

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European cannabis executives would welcome a decision by the German government to pursue a trial recreational cannabis program versus nationwide legalization – even if that meant a significantly smaller market for businesses to pursue.

Still, some experts say any trial program in Germany would come with risks, pointing to the flailing Netherlands experiment and even parallels with Japan’s “scientific” whaling activities.

German media reported last week that federal officials might resort to a “cannabis legalization light” model amid concerns that nationwide legalization could violate European law.

German Health Minister Karl Lauterbach had previously expressed confidence that the country’s plan to legalize recreational cannabis would overcome one of its biggest hurdles – European Union approval.

Now, EU approval for full legalization is looking less likely, although no final decision has been made.

Germany requires European approval that its plan wouldn’t violate international law because it is part of the Schengen Area, which comprises 27 countries that have officially abolished passport and other controls at their mutual borders.

Executives contacted by MJBizDaily said the implementation of any temporary trial program shouldn’t be seen as a major setback.

“The ‘cannabis light’ model is a logical step that European countries like Netherlands, Luxembourg, Malta and Switzerland have already (taken), so this would be a safe political course (for Germany),” Michael Sassano, CEO of Somai Pharmaceuticals, said via email.

Somai, a medical cannabinoid producer, is based in Lisbon, Portugal, and Dublin, Ireland.

Sassano said it would have been a stretch to assume the European Union would easily give German recreational cannabis the green light, given that only a handful of EU countries currently have full-fledged medical cannabis programs, contrary to the German health minister’s optimism.

“The growth model for Germany continues to be the strongest in Europe, and with any version of cannabis legalization ‘light,’ this is another positive move to increase access to volumes,” Sassano said.

Trials and tribulations

So-called trial programs – sometimes also called experiments or pilots – are relatively rare in North America but have become popular in Europe as a bridge to potentially broader drug reform.

That’s partly because trial programs are easier to get approval for politically, and they allow a country to overcome certain international treaty obligations, provided the “experiments” are seen as sincere and collect meaningful data.

Alfredo Pascual, vice president of investment analysis at Guernsey-headquartered Seed Innovations, told MJBizDaily that cannabis programs for scientific experiments might seem easier than full legalization to justify in terms of international law, because the 1961 Single Convention on Narcotic Drugs allows the use of cannabis for scientific purposes.

“But it wouldn’t be without challenges. International treaties need to be interpreted ‘in good faith,’” he said, citing Articles 26 and 31 of the Vienna Convention on the Law of Treaties.

“Countries aren’t supposed to use tricks to circumvent their international obligations.”

Pascual noted that Japan tried to use the “scientific research” exemption in the International Convention for the Regulation of Whaling to justify continuing to kill whales.

Years later, the International Court of Justice ruled against Japan.

“I think the idea of cannabis social experiments for ‘scientific purposes’ has merits, but I don’t think that it’s a pathway that could be abused to have massive, open-ended, free-for-all experiments without real scientific output,” he said.

“For it to work, I believe it would probably need to be subject to several limitations and real research organizations (for instance, universities) would probably have to be involved.”

If Germany does pursue a trial program in lieu of full-on legal reform – which remains to be determined – it wouldn’t be the first European country to backtrack in the face of legal uncertainty.

In 2021, Luxembourg backpedaled on its initial plan to establish Europe’s first fully legal recreational cannabis market.

After benchmarking the Canadian model, the Luxembourg government instead announced plans to allow home cultivation of up to four plants for personal use – with no option for retail sales.

Some of Europe’s cannabis trials have experienced major setbacks in one form or another.

The Netherlands has had issues getting its recreational cannabis trial program up and running.

The Dutch have been laying the groundwork for the pilot program for four years, after originally planning its launch in 2020.

Ireland has had major issues with its medical cannabis trial, while Denmark’s has failed to retain more than 500 participants.

‘First step to legalization’

Despite setbacks in some European trials, Dirk Heitepriem, an Aurora Cannabis executive in Germany, isn’t concerned about Berlin’s potential pivot to an experiment.

He suggested any trial program in Germany “would provide the county the opportunity to work together with other parties in Europe who want to legalize as well over the next four or five years to create a European framework which works for everyone.”

“I’m not afraid this would be turned back, because that’s not German tradition. Once you’ve created a framework, it’s going to stay there,” he said.

Heitepriem, also deputy chair of the German Cannabis Business Industry Association, said any trial in Germany would herald the first step toward eventual legalization.

“It’s not a step in the right direction, it’s the first step to legalization,” he said.

“It’s going to take longer than almost everyone expected. For us, it was always a long-term play.”

Heitepriem doesn’t see the German medical market declining, even if the county allows recreational cannabis sales via a trial program.

He said the reimbursement system for patients is complicated, but it’s working.

But Heitepriem said businesses focusing on the so-called private-payer market might have some difficulties.

“Where we will see changes,” he said, “is in the so-called private-payers market, where people will probably move over to the legal (recreational) market.”

Source: https://mjbizdaily.com/european-cannabis-executives-favor-german-trial-legalization-program/

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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