Business
How a Canadian cannabis nursery got nearly CA$2 million in federal funding
Saskatchewan cannabis nursery Mother Labs’ recent success securing 1.8 million Canadian dollars ($1.4 million) in federal funding shows how Canada’s cannabis industry can benefit from government financing at a time when capital is scarce.
“It’s smart money, and it will be truly helpful for us to grow and expand throughout the prairies and throughout western Canada,” Brian Bain, CEO of privately held Mother Labs, told MJBizDaily.
Public records show that cannabis business funding – in some cases worth millions of dollars – has been made available from a range of Canadian federal government bodies for applications including business development, expansion and research.
The investment in Mother Labs from federal agency Prairies Economic Development Canada (PrairiesCan) was announced in late June, alongside funding to 10 other Saskatchewan businesses.
Selling equity or raising funds from a private lender is particularly difficult in the contemporary cannabis sector, Bain said.
“Money is not easy to get for us right now, and it’s not easy to get for anyone in the space,” he explained.
“So when it comes, you have to take it, and it was definitely in line with where we were as a company in our growth stage,” Bain said, adding that this was the second time Mother Labs applied for funding.
As a nursery, Mother Labs supplies licensed Canadian marijuana producers with starting materials and helps them source and manage cannabis genetics.
“If a grower has a genetic – let’s say it’s dirty or they don’t want to grow (it) for a few years – we can take that in, store it, help them manage it and give it back to them,” Bain explained.
Mother Labs funding
Mother Labs’ government funding comes in the form of an interest-free loan meant to match funds from the company, Chief Financial Officer Jeff Bourassa wrote in an email to MJBizDaily.
Bourassa said the nursery has a three-year window to execute its project using the funds, followed by a five-year repayment period.
The loan is interest-free as long as payments are made on time, he wrote.
CEO Bain said Saskatoon-based Mother Labs will use the money to expand into British Columbia, as well as investing in automation and hiring new talent.
He described the application process as “quite arduous,” particularly in the fast-changing cannabis space.
“They need details in terms of where the capital is being utilized, what the plan is, how it benefits the province, how many hires it will involve — there’s a lot of information, a lot of due diligence we have to go through to really be able to accurately predict the future.”
Nevertheless, Bain believes the funding application process was roughly as much work as applying for funding from a bank, and he noted that a bank might be “a little less risk tolerant.”
“This is definitely something to help emerging businesses,” he said, adding that banks typically want “a sure bet.”
Finding funding opportunities
PrairiesCan is one of seven regional development agencies that fall under the portfolio of Canada’s federal Innovation, Science and Economic Development ministry (ISED).
Other ISED regional development agencies have funded cannabis business initiatives as well.
A spokesperson for the Atlantic Canada Opportunities Agency, another regional development group, told MJBizDaily that applications for funding are judged based on criteria including compliance, economic benefit and agency priorities. Agencies also evaluate potential recipients’ “technical and financial management capacities” as well as their “ability to deliver the proposed project activities.”
Canadian cannabis companies in search of government funding might consider exploring Canada’s Open Government database, which lists grants and contributions from various federal departments and agencies to cannabis companies including laboratories, processors and producers.
Examples of government grants and contributions to cannabis producers include:
- A nearly CA$100,000 contribution toward an automated pre-rolling machine for Northwest Territories grower Boreal Cultivation from the Canadian Northern Economic Development Agency (CanNor), lasting from 2021 to 2022.
- A CA$50,000 contribution from Agriculture and Agri-food Canada to help Ontario cultivator Glasshouse Botanics achieve GMP certification for European medical cannabis sales, lasting from 2021 to 2023.
- A CA$2.9 million contribution, from 2022 to 2025, to British Columbia producer Tantalus Labs for greenhouse expansion from Western Diversification Canada, which has since been divided into Pacific Economic Development Canada (PacifiCan) to serve British Columbia and PrairiesCan to serve Alberta, Manitoba and Saskatchewan.
Other government grants and cannabis industry contributions have been related to the COVID-19 pandemic.
The biggest Canadian government contribution to the cannabis industry listed on the Open Government portal is a nearly CA$5.4 million contribution from PrairiesCan to Alberta-based PBG BioPharma to increase manufacturing capacity, lasting from 2022 to 2025.
A PrairiesCan spokesperson recommended companies visit the agency’s website to learn about funding programs as well as ISED’s Business Benefits Finder to search for government support opportunities.
For cannabis companies seeking funding like Mother Labs received, CEO Bain offered some advice: “Be diligent, don’t take no for an answer.”
“Be aware of different programs that are out there, and constantly ask questions,” he added.
A variety of federal and provincial programs are available, Bain continued, adding that companies “have to go out there and find them.”
“And if you’re not there to apply, then your chances of getting it are obviously zero.”
Source: https://mjbizdaily.com/how-a-canadian-cannabis-nursery-got-nearly-ca2-million-in-federal-funding/
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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