Business
Germany unveils scaled-down recreational cannabis legalization plan
The German government is backpedaling on its plan to implement nationwide recreational cannabis legalization, instead opting for a two-track, scaled-down approach with limited commercial opportunities – for now.
Germany’s new blueprint for a regulated cannabis industry, unveiled Wednesday, features two pillars:
Germany is the latest country to scrap, postpone or otherwise present significantly watered-down cannabis legalization plans after originally promising full-scale legalization.
These policy pivots offer an important lesson to businesses on the importance of acting strategically and not reflexively.
Israel, Mexico and New Zealand have all unveiled ambitions to legalize and regulate adult-use cannabis in recent years, only to see those plans fizzle out for various reasons.
After unveiling a blueprint in October 2022, Germany’s draft framework was sent to the European Commission, the European Union’s executive branch, for approval to ensure compatibility with EU and global drug laws.
It’s clear that process did not go to according to plan for the current German government.
Germany’s government said it agreed to rethink its cannabis legalization blueprint after discussions with the EU Commission and taking international law into account.
The new scaled-back plan aims to:
- Control quality.
- Prevent the transfer of contaminated substances.
- Protect minors.
- Protect the health of consumers.
- Curb the black market.
Germany’s federal government said it intends to present a draft law to parliament soon in addition to continuing efforts to promote the German approach of cannabis regulation to its European partners, particularly through missions abroad.
In the medium term, Germany is also examining the extent to which a sufficient number of EU-member countries could initiate their own cannabis regulation initiatives to comply with the relevant EU legal framework.
“The previous restrictive handling of cannabis in Germany has failed,” Federal Minister of Justice Marco Buschmann said in a news release.
“It’s time for a new approach that allows more personal responsibility, pushes back the black market and relieves the police and public prosecutor’s offices.”
‘Reality check’
Marla Luther, chief strategy officer at Avextra, a medical cannabis company in Germany, said the country was restricted by EU treaties in a way that Canada wasn’t when it legalized recreational cannabis in 2018.
Germany’s hands were tied because it’s part of the Schengen-area countries, which don’t have border controls.
“This was the biggest challenge on the European level – upholding the Schengen rules,” Luther said in an interview with MJBizDaily.
Avextra, a medical cannabis company with roots in plant-based medicine, is on a path to evidence-based cannabis medicines, similar to United Kingdom-based GW Pharma.
The Bensheim-headquartered company cultivates cannabis in Portugal and focuses on extracts-based innovation in Germany, where it sells into the medical market.
“The Germans have now found a way to figure out how to make this possible and still be compatible with EU treaties,” Luther said. “Maybe they were too robust in what they thought they could get through with the (EU Commission).
“They’ve had quite a reality check with (the EU Commission).
“There has to be a European-wide legal framework in order to make it possible. I think what you’re going to see now is Germany working a lot closer at the EU level to get a coalition together of seven countries or more.
‘Two-column’ model
Under the legalization plan Germany presented Wednesday, the nonprofit associations allowing personal cultivation and possession would be evaluated after four years.
If need be, this plan could be adjusted to account for issues related to health and youth protection as well as combating the illicit market.
Penalty-free possession would be allowed for personal consumption of up to 25 grams of cannabis.
Under narrow, clearly defined legal frameworks (which have not yet been determined), the associations would be able to jointly cultivate cannabis for recreational purposes for members to consume.
Commissioning third parties outside the association for cultivation would not be allowed, the government said.
Approval and monitoring would be carried out by state authorities, according to the news release, including compliance with quantity, quality and youth protection specifications and on-site inspections.
The German government said it might ban membership in more than one association.
Other details include:
- Up to three female flowering plants would be allowed for home cultivation.
- The number of members per association could be capped at 500, with a minimum age of 18. Members would have to live in Germany.
- Reporting and documentation would be required for the quantities produced and delivered.
- Membership fees would cover the association’s expenses.
- The possibility of importing seeds from third-party countries for the associations is being examined.
- A general advertising ban would be imposed on associations and for cannabis, but the government said “factual information” is acceptable.
The second pillar will focus on regional pilot projects with commercial supply chains.
Luther, the Avextra executive, said the key for the recreational-focused industry would be to see how strong the key performance indicators are for the proposed regional trial programs.
“At the end of the day, the biggest issue is going to be how big or small these model regions will be, and that’s how you know whether the business model is going to work,” she said.
The German government characterizes this pillar as “the next step on the way to a nationwide regulation,” according to the release, implying full legalization could still occur in the future.
The public policy goal of this step would be to create and collect data to scientifically examine the effects of a commercial supply chain on public health and youth protection as well as the illicit market.
Details for this pillar weren’t as fleshed out as they were for the nonprofit pillar.
Some key points include:
- The project duration is expected to last five years.
- Approval of the sale of edibles is being examined.
- The trial would be scientifically monitored and evaluated, and the results will be shared with European partners and the EU Commission.
Source: https://mjbizdaily.com/germany-unveils-scaled-down-recreational-cannabis-legalization-plan/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
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.
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