Business
First Nations fight ‘systemic exclusion’ in Canadian cannabis industry
Some Indigenous leaders believe they’ve been largely excluded from Canada’s multibillion-dollar legal cannabis retail and cultivation industry.
That’s the message Indigenous leaders delivered last month at a Senate committee studying the implementation of the country’s federal cannabis law.
At the Senate hearings held by the Committee on Indigenous Peoples, some Indigenous leaders called for the federal and provincial governments to engage in meaningful dialogue over a carve-out within the federal and provincial laws allowing them to regulate cannabis in accordance with their own principles.
Darcy Gray, chief of Listuguj Mi’gmaq First Nation, said economic opportunities arising from cannabis legalization didn’t seem to be part of the conversations being had between the federal government and First Nations.
“Essentially, we seem to be an afterthought and something to be dealt with once things were set up and the market secured by others. So we recognize familiar patterns of systemic exclusion,” Gray told the committee.
Fully legal cannabis retail and cultivation remain largely absent from Canada’s Indigenous communities.
On the production side, only six of more than 600 cannabis producers licensed by both Health Canada and the Canada Revenue Agency are located on a reserve, implying the federal government has sanctioned, directly or indirectly, very little legal cannabis production in First Nations communities.
Provinces, responsible for retail regulation, haven’t done much better.
Provinces have sanctioned only a handful of stores in Indigenous communities across the country.
At the hearings, Health Canada said it operates the Indigenous Navigator service to assist Indigenous communities’ participation in the production and manufacturing of cannabis.
Health Canada said there were 47 indigenous-affiliated or owned commercial producer businesses.
The regulator allows Indigenous-affiliated applicants to start the license-review process of their application before their facility is built, whereas non-Indigenous companies need to complete their facility before the Health Canada review can begin.
“Since 2016, Health Canada officials have participated in approximately 290 engagement sessions to discuss cannabis legalization and regulation, which has informed how Health Canada administers the Cannabis Act,” an agency representative told the committee.
“Since 2019, Health Canada has had discussions with an increasing number of interested First Nations developing their own cannabis-control measures ‘to explore mutually beneficial cannabis arrangements within the existing framework of the Cannabis Act.’”
Economic opportunity
Gray said Listuguj Mi’gmaq First Nation established its own cannabis law and set up stores under interim rules.
“Six years later, we’re still on the outside looking in on many aspects, despite putting in place many pieces to ensure our participation in the industry,” the chief told the committee.
He also suggested Indigenous communities are missing out on public health benefits from regulating cannabis production and sales on reserves.
“Systemic barriers remain in place. Our best efforts and those of other First Nations seem to be falling on deaf ears, especially when it comes to working with the province of Quebec,” he said.
The chief said “systemic exclusion” from the legal sector sends the message that Ingenious health is of lesser importance.
“Meanwhile, the industry as constructed seems to be floundering and asking for relief in some way, asking for reduced regulations and tax breaks and greater advantages,” Gray said.
“Meanwhile, we’re still pushing for inclusion and a better way forward.”
The chief said he pushed for something along the lines of what became Section 62 in the province of Quebec’s Cannabis Act.
That section of Quebec’s law allows the provincial government to enter into agreements with First Nations regarding cannabis regulation, so long as those deals have the same objectives as Quebec’s law.
Quebec is now five years into legalization, and MJBizDaily understands the province has reached no such deals with any Indigenous communities.
The Quebec government also controls cannabis sales via the government-owned monopoly Société québécoise du cannabis.
But no stores have been opened, or sanctioned, by the province to facilitate access to “legal” cannabis on reserves.
‘Absence of meaningful dialogue’
Dwayne Nashkawa, a strategic adviser for Nipissing First Nation, told the Senate committee there’s been an “almost an entire absence of meaningful dialogue” for the past few years on the part of the federal government.
“There’s been a lot of talk about a high-level of engagement with First Nations about cannabis,” he said, “but beyond the initial round of PowerPoint presentations and group meetings, there’s been almost an entire absence of meaningful dialogue for two or three years now on the federal side.”
Nashkawa called for a more “meaningful” level of engagement from the federal government.
“To make our regime work, we effectively had to adopt most of the elements of Ontario’s regime,” said Nashkawa, who was involved in the development and implementation of the Nippissing First Nation Cannabis Law.
“We view this as an interim approach to provide security to those (businesses) who were making an investment and to make sure the supply is safe and that the actors in the community were from our community.”
Nashkawa said systemic barriers prevent cannabis businesses on Nipissing First Nation from doing business with cannabis businesses on other First Nations.
He said jurisdictional issues include the right to govern economic development in their own territory, “entrenching the ability for our citizens to participate in the cannabis economy.”
“It’s only the federal government that could facilitate and support the firm establishment of those relationships,” he said.
Nipissing First Nation law requires that local vendors obtain a business license from the First Nation to operate a store.
A condition of that stipulation is that the operator must become an authorized cannabis retailer with the government of Ontario.
“We want recognition of this right to participate in the economy free from reprisal and on a fair basis with a level playing field,” he told the committee.
“We also want the legal basis to work with other First Nations on a system of larger collective self-regulation for recreational cannabis so we can provide our retailers with a framework free of provincial (and federal) regulatory priorities.”
‘Adverse impact’
The exclusion of Indigenous-led cannabis regulation in their communities means more than lost business opportunities, some First Nations leaders say.
Tonya Perron, elected council chief for Mohawk Council of Kahnawá:ke, said legalization amplified some negative issues.
“Canada’s legalization of cannabis through the enactment of the Cannabis Act was meant to address and resolve the issues that Canada was facing regarding the illicit market. Unfortunately, it has had an adverse impact on Kahnawá:ke in particular, and on First Nations,” she told the committee.
“Rather than resolving any of these issues, it has actually amplified them and added to those issues.”
She said the main objectives of the Cannabis Act were to protect public safety and health, as well as to provide for the establishment of a diverse and competitive industry.
“Unfortunately, it has failed in meeting these objectives in my community of Kahnawá:ke,” she said.
“There have been significant impacts with respect to public health and public safety on our jurisdiction, and all of this with no economic benefit.”
She said youth consumption has increased, for example.
Regarding policing, she said her territory’s “peacekeepers” lack the resources to monitor and enforce the new rules.
“The Cannabis Act disregarded the First Nations’ right to self-determination and jurisdiction in that it didn’t create a possibility for First Nations to actually regulate the industry outside the federal and provincial frameworks, which led to some of these problems arising, and we’re trying as best as we can to gain control of them,” Perron told the Senate hearing.
“We have made efforts to curb the illicit market in the territory. We’ve imposed a moratorium, created our own law, we have a Cannabis Control Board.
“We’ve made numerous attempts at entering into an agreement with Quebec, to no avail, and now the pressure is building in the community given the fact that there is no legal opportunity.”
Perron said the Kahnawá:ke put enormous resources into cannabis regulation while not seeing economic benefits.
“There is absolutely a need for legislative reform,” she said, “in the sense of a carve-out within the Act itself for First Nations in terms of regulating (production and sale) to have direct access to the Health Canada licensed products within their territories and not through the provinces.”
Source: https://mjbizdaily.com/first-nations-fight-systemic-exclusion-in-canadian-cannabis-industry/
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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