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Failure to launch: What happened to Canada’s ‘cannabis strategy table?’

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A proposed cannabis “strategy table” appears to be stuck in bureaucratic and political gridlock in Canada’s capital, more than a year after it was first announced.

In April 2022, the planned strategy table was unveiled in the country’s federal budget to provide a forum for government officials and cannabis industry executives to come together to discuss steps that could bolster the legal industry – this at a time when many companies were struggling financially.

The lack of open communication channels between the cannabis industry and the Canadian government comes at a pivotal time for the sector, with a majority of federally regulated companies unable to keep up with excise tax payments to the federal government, soaring profits at government-owned marijuana businesses and widespread failures among privately owned enterprises.

When the strategy table was announced, the industry embraced the opportunity for more open dialogue with the government, even though executives had been hoping – and lobbying for – more substantive reforms, particularly to the onerous taxation regime Canada imposed on cannabis producers.

However, the forum still hasn’t launched 13 months later. And the government in Ottawa won’t say what’s causing the delay.

Emails obtained by MJBizDaily via Canada’s Access to Information and Privacy (ATIP) law show that the senior bureaucrats involved the creation of the forum appeared to believe t was on schedule as far back as 10 months ago – in June 2022 – and even produced a list of proposed members.

Cannabis industry sources say the fact that talks have failed to start is symbolic of the hands-off approach the federal government has taken when it comes to supporting the sector.

The missing forum also comes as the most recent budget delivered by the federal government, in April 2023, made no meaningful commitment to solving government-imposed hurdles facing businesses.

Shane Morris, founder of Ottawa-based Morris and Associates Consulting, said the industry is in dire straits and needs urgent attention from the federal government.

“One would have hoped that considering the pressures the industry is currently under, it would have taken less than a year to get the table up and running,” he told MJBizDaily.

“The question now is, what is the point of the table, if a year later, it’s not operational yet?

“Plus, at this pace, it will take years to have any recommendations.”

The strategy table appeared to be a last-minute addition to the 2022 budget to give the impression the government was doing something, Morris suggested.

‘Impossible to understand’

Innovation, Science and Economic Development Canada (ISED), a federal department responsible for regulating industry and supporting economic development, was tasked with launching the cannabis strategy table forum back in early 2022.

ISED wouldn’t directly answer MJBizDaily’s questions on the forum’s composition and when it might begin its work.

“Innovation, Science and Economic Development is undertaking economic analysis, gathering business intelligence, and actively building inter-industry and inter-government coordination and collaboration,” the department wrote in emailed responses to queries from MJBizDaily.

“These activities serve as recognition of the economic and business context of the sector, as well as the importance of building a sustainable legal cannabis sector to achieve the objectives set out in the Cannabis Act.

“Development of the cannabis strategy table is ongoing and updates will be provided publicly once they become available.”

ISED does not regulate the cannabis industry; that responsibility falls on a separate federal department, Health Canada.

Pierre Leclerc, director general of the business group Quebec Cannabis Industry Association (AQIC), said it’s “strange” the government is taking so long to get the forum up and running.

“It’s absolutely impossible to understand why it’s taking so long,” Leclerc said in a phone interview with MJBizDaily.

“I am getting impatient to be quite frank. Thirteen months is too long. They need to get this roundtable working ASAP, especially where the industry is right now. We can’t wait for this work to start any longer.”

This wouldn’t be Canada’s first economic strategy table, which brings industry and government together, but it appears to be the slowest to become operational.

Canada’s 2017 federal budget promised the creation of six economic strategy tables.

All six were launched within seven months.

The emails

MJBizDaily acquired hundreds of pages of emails from ISED via the ATIP law covering the period between early April 2022, when the planned strategy forum was announced, and the end of June, three months later.

Since the emails cover a short period of time, they don’t fully reveal why the forum has not yet been launched.

They do, however, paint a picture of a government department that appeared to be surprised it was given the task in the first place.

One email was sent on April 11 by Eric Costen, now senior assistant deputy minister, industry sector, at ISED, to Sheryl Groeneweg, director general for ISED’s Manufacturing and Life Sciences Branch.

“You may have seen that the budget included a bit of a surprise in the form of a ‘new cannabis strategy table’ to be led by ISED,” Costen wrote to Groeneweg.

Costen was a prominent figure in cannabis regulation over the past decade or so, having held positions such as executive director of the Office of Medical Cannabis, director general of the Cannabis Legalization and Regulation Secretariat.

He later headed up overdose crises and drug policy at the Controlled Substances and Cannabis Branch.

Much of the April 11 email is redacted.

“Obviously we need to scope out the work and potentially will have resources to bulk up the team (this is TBD). I’d like to have a brief meeting during the week to discuss the project and agree to some basic next steps,” Costen wrote.

The emails – hundreds of pages in length altogether – mostly deal with the early stages of organizing the strategy table forum and engaging dozens of bureaucrats across multiple ministries, including Health Canada.

Some of the emails contain insight into the thinking of influential bureaucrats such as Costen.

That’s relevant because the medical and recreational cannabis industries in Canada are heavily regulated, and even the smallest regulatory pivot has the potential to impact access for thousands of patients or revenue opportunities for legal businesses.

In an email dated May 30 to ISED senior policy adviser Paul O’Keefe and a number of other people, Costen shares his thoughts about a document titled, “Canadian Cannabis Sector Backgrounder.”

In his email, Costen identifies some of his “long standing pet issues” regarding the cannabis industry.

“There is no such thing as ‘medical’ cannabis, there is only cannabis, which is sometimes used (for) medical purposes,” the former medical marijuana regulator wrote.

“Similarly, ‘recreational’ cannabis is a nonsensical term IMO – we’d hardly ever talk about recreational alcohol.”

On track?

By the end of June 2022, the senior bureaucrats overseeing the creation of the cannabis industry forum appeared to think it was on schedule.

A document dated June 16 and labeled “secret – draft” says the “launch” of the forum is “on track.”

However, no date is listed for an anticipated launch.

The “secret” document, most of which is redacted, describes the strategy table as “an opportunity for the government to hear from industry leaders and identify ways to work together to grow the legal cannabis sector in Canada.”

Another email appears to show the government had completed its list of “proposed” strategy table members as far back as June 2022.

Yet no list of strategy table members, proposed or otherwise, has been publicly disclosed.

The email, dated June 26, 2022, from Costen to his ISED colleagues, says: “Paul O is making a few last minute edits to a package for the minister with proposed members (redacted). The DM reviewed it last week and had only minor comments. The revised package should get routed up this week. The tricky part with this project is (redacted).”

“Paul O” is a likely reference to O’Keefe, the director at ISED, and “DM” refers to deputy minister of Innovation, Science and Economic Development, Simon Kennedy.

‘Cannabis package’

A significant amount of time appears to have been spent creating the so-called “cannabis industry forum package” – an informational package also containing recommendations – for Kennedy and François-Philippe Champagne, federal minister of innovation, science and industry.

The emails show the package wasn’t delivered until the second half of June, almost three months after the strategy table was announced in the budget.

Multiple versions are contained in the released emails.

A report titled, “Advice to the Minister of Innovation, Science and Industry; Development and Implementation Plan for a Cannabis Industry Forum” is marked “CONFIDENTIAL.”

Most of the report, including a section labeled “Next Steps,” is redacted.

The summary contained in the report notes that ISED:

  • “is preparing to stand up an industry-government forum focused on the cannabis sector.”
  • “Has license” to determine the form and scope of the forum.

Interestingly, one of the versions of the report states Health Canada is “currently launching a review of cannabis regulations, as dictated by legislation.”

However, the Cannabis Act – the federal law governing the cannabis industry – mandates a review of the law “and its administration” three years after coming into force.

It did not require a review of the regulations.

This is an important distinction, because the cannabis industry has been requesting a review of certain regulations for years – in particular, packaging rules – but to date, no substantive reform has been rolled out.

The federal government did not initiate the legislative review – which is a completely separate undertaking from the strategy table – until almost four years after the Cannabis Act entered into force – an apparent violation of its own law.

Also separately, Health Canada is conducting public consultations on potential amendments to the federal cannabis regulations.

Source: https://mjbizdaily.com/canadian-cannabis-strategy-table-stuck-in-political-gridlock/

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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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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