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Is Canada (finally) going to allow CBD to be sold in mainstream retail?

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A watershed CBD recommendation expected this summer from Canadian health authorities could resolve one of the oddest differences between the cannabis industries in Canada and the U.S. – their starkly different approaches to hemp extracts.

In the United States, hemp is legal and broadly available, while higher-THC cannabis remains an illicit drug on the federal level – despite broad disregard for marijuana prohibition by state governments.

The Canadian government, by contrast, legalized high-THC cannabis in 2018.

But CBD remains a controlled substance in Canada, regulated in a similar manner to high-THC marijuana.

Canada’s CBD sellers commonly operate in the illicit market because of federal rules requiring CBD sales to occur in provincially licensed stores, which tend to specialize in high-THC products and aren’t able to import U.S.-made CBD for commercial purposes.

But Canada’s stifled CBD market could soon be opening up.

That’s because Health Canada, which oversees both pharmaceutical drug sales and the nation’s high-THC cannabis industry, is expecting final recommendations this summer on CBD and what it calls “health products containing cannabis that would not require practitioner oversight.”

A three-year review by a Health Canada advisory committee is expected to conclude this summer with “appropriate safety, efficacy and quality standards” for those products, agency spokesperson Tammy Jarbeau told MJBizDaily.

Jarbeau could not say how long it might take the agency to make a decision on CBD sales after the release of the recommendation.

If it all leads to market opportunities outside the nation’s marijuana retailer sector, Canada could see a huge new market open to cannabis as well as mainstream businesses.

“The opportunity is significant” for a vibrant CBD market outside traditional cannabis retailers, said Bethany Gomez, managing director of the Brightfield Group, a cannabis-focused consumer-research firm in Chicago.

“Canadian regulations have been a huge barrier to the CBD category gaining traction. If the regulations change, there’s a real opportunity for significant growth for CBD.”

According to Sean Karl, a Vancouver, British Columbia-based supply-chain consultant who specializes in cannabis logistics, many mainstream Canadian retailers are eager to start selling CBD.

He used a hockey term to describe the way retailers there want to carefully maneuver to maximize profit without violating any restrictions set by health authorities.

“Everyone’s trying to stickhandle through the regulations,” he said.

Why Canada started slow

Canadian regulators say they want more information on over-the-counter CBD before allowing it, and retailers have largely complied.

That has prevented a national market for hemp extracts from taking off.

CBD products can be found in some of Canada’s 3,000 or so cannabis retailers.

But the cannabinoid can’t be found legally in convenience or grocery channels.

None of Canada’s 13 provinces or territories maintain hemp laws that contradict those of national authorities.

Among Canada’s 74 approved hemp cultivars, only a handful produce enough CBD for commercial viability.

Extracting CBD from a hemp cultivar bred for its fiber or grains is possible but is “kind of a money-losing operation,” said Deepank Utkhede, a Canadian native and chief operating officer at Vantage Hemp, a cannabinoid manufacturer in Greeley, Colorado.

“It’ll almost cost more to extract it than you’re going to get for it,” Utkhede explained.

Meanwhile, Canadian import restrictions have prevented the nation’s product manufacturers from tapping cheap wholesale CBD supplies in the U.S.

With limited exceptions for medical and research use, Canada doesn’t allow foreign-made CBD into the country.

Because of those CBD limitations, cannabis entrepreneurs in Canada have almost exclusively gone after existing cannabis users, who are interested mostly in THC profiles, Gomez said.

“Canada has not successfully wooed over people who were not high-THC cannabis users before,” she said.

“In the U.S., CBD was everywhere in 2019. Celebrities were all talking about it. It was in every headline.

“In Canada, businesses were much more focused on legacy cannabis users.”

Different story in the U.S.

Things have gone differently for CBD in the United States.

For years now, U.S. health regulators have been making the same arguments as their northern colleagues, saying there isn’t enough research on CBD to allow it to be sold outside pharmaceutical channels.

The difference?

Despite those health warnings, retailers in all 50 U.S. states can be found selling over-the-counter CBD anyway.

From head shops to hair salons, yoga studios to farmers’ markets, thousands of CBD products are openly sold and promoted. Gummies, tinctures and capsules are especially popular.

Some U.S. retailers point to contradictory state laws regarding hemp extracts to justify sales.

Others simply ignore health regulations at all levels of government and hope that the federal legality of low-THC hemp plants equates to low legal risk from selling extracts from those plants. It’s a cavalier business approach that has worked with few exceptions.

Indeed, lax enforcement of unapproved CBD use in the United States has emboldened hemp operators to experiment with further manipulating extracts to produce intoxicating isomers such as delta-8 THC and HHC. (HHC, short for hexahydrocannabinol, is a hemp derivative occurring naturally in small quantities in the plant.)

Perhaps ironically, those intoxicating hemp products are most widely available in states that don’t yet allow products made from naturally occurring THC.

Northern hope

Hemp businesses making CBD aren’t just hoping Canada will open new sales opportunities.

Some are counting on Canada to correct some of its southern neighbor’s mistakes.

American CBD manufacturers struggle to position themselves as quality brands when U.S. health authorities repeatedly decry CBD as unsafe but then do little to take low-quality products off shelves.

Among those companies is Charlotte’s Web Holdings, a Colorado-based CBD maker that holds more than 3% of the $5 billion American CBD market in 2022, the largest share of any U.S. manufacturer, according to Brightfield sales data.

Charlotte’s Web has been working since 2019 to have a proprietary CBD-rich cannabis variety approved to be grown in Canada, partnering with Canadian producers to avoid import restrictions.

That cultivar was approved last year, making 2022 the first full growing season.

(Charlotte’s Web actually can get some of its CBD products imported into Canada, via one of the rare exceptions for medical use. But the exemption applies only to a small number of patients and doesn’t allow Charlotte’s Web to sell CBD to new Canadian users.)

Charlotte’s Web Chief Operating Officer Jared Stanley said his company has been preparing for years to begin widespread Canadian sales and sees potential benefits from Canada’s careful CBD approach.

“My hope for Canada is that they don’t make the same mistake that U.S. made,” Stanley told MJBizDaily.

“(The U.S.) legalized the category, then we allowed it to be marginalized into lollipops at gas stations.

“We want to see a market open up in Canada that keeps the highest level of quality control and consistency to the consumers.”

Gomez acknowledged that a potential CBD market in Canada would open under far different market conditions than those seen in the U.S. in the heady months after hemp cultivation was legalized via the 2018 Farm Bill.

“It’s not the latest new health ingredient anymore,” she said. “Canadians may be a bit less motivated to go try it.”

That doesn’t deter CBD makers.

“What we see in Canada is a great opportunity for the category,” Stanley said.

Source: https://mjbizdaily.com/when-will-canada-allow-cbd-to-be-sold-in-mainstream-retail-stores/

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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