Business
Is Weedmaps Listing Illegal Cannabis Retailers Again in Order to Boost Revenue As Their Stock Price Tumbles over 85%?
Recent complaints filed with state and federal regulators in California have alleged that Weedmaps is carrying listings of illegal marijuana retailers and products. For those that do not know, Weedmaps is one of the cannabis advertising giants, which makes these allegations very serious. Our friend John Schroyer at MJ BIZ Daily broke the in-depth story, which you can read here. Are there any truths to the allegations, what should we expect as a response from Weedmaps, and what can the possible implications be now that they are a public company and Federally regulated? These and many more are the issues that this article hopes to address so read on and let’s dive right in.
The allegations so far
The complaints being addressed were filed in May with the California Department of Cannabis Control (DCC) and in June with the U.S. Securities and Exchange Commission (SEC). The complaints allege that the leadership of Weedmaps is allowing vast amounts of black markets cannabis activity without effecting changes they agreed to last year to not allow illegal cannabis businesses on their map or site. The complaint contends that the black market activity on the platform is directly harming the growth of licensed businesses. This is because Weedmaps is giving such operators a competitive edge through the reach and capacity of its website. The complaints also stated clearly that these acts of Weedmaps expressly undercut the legal cannabis marketplace the organization wishes to serve.
It is left for the regulators with whom the complaints against Weedmaps have been filed to establish if the allegations have merit. If this is done, the body stands the risk of facing hefty fines. This is bound to have strong implications on the cannabis industry in the U.S. because Weedmaps remains one of the prominent U.S. cannabis companies. We have not seen the end of this ordeal as this is not the first time that Weedmaps will be faced with issues over illegal ads.
A similar case surfaced four years ago which eventually resulted in such advertising being removed from their website in 2020. The company came under fire from regulators in 2018 when it issued a letter against such advertising practices. The company hid under the umbrella of protection as an online platform to reject the demands. Nonetheless, it made a U-turn to start demanding state license numbers in January 2020. Many believe this was only because the company was set to go public on the Nasdaq in 2021 before debuting on the exchange in June 2021.
These present complaints were filed by the executives of Canex Delivery which is a Los Angeles marijuana company. In its complaint, the executives stated that they had complained to Weedmaps directly but no decisive action has been taken by the company. The CEO of Canex Jim Damask and its Chief Financial Officer Joseph Bitzer was able to provide screenshots and documents to back up their allegations.
From the allegations, Canex alleged that it lost close to tens of millions of dollars due to the activities of Weedmaps. The company went further to accuse Weedmaps of selling ads to bolster its bottom line by misleading investors. These unethically increase the revenue of Weedmaps which they report as legitimate revenue in quarterly reports, according to Canex. Weedmaps has refused to comment directly on the issues of these complaints while resorting rather to the state through its spokesperson that it has received no communications regarding it. The SEC has also chosen to not comment on the matter while the spokesperson of the DCC has stated that the California regulators are making investigations into the matter.
Evidence presented by Canex
Most of the ads presented by Canex against Weedmaps were on behalf of Southern California Delivery companies. Many outrightly violate state laws within California such as ads touting THC brownies and gummies of 1000 milligrams. Others violated policies of Weedmaps itself such as failing to display its company’s state license number which has been a requirement since January 2020. Others advertised illegal operating hours with some using state license numbers that belonged to other businesses.
Going back to March, the CEO of Weedmaps stated that the company has a trust and safety team that is tasked with reviewing business listings. Beals stated that this team helps Weedmaps with vetting who is on the marketplace. The Canex executives have stated that they have been unable to reach anyone on the Weedmaps trust and safety team. While it is still not sure if this team exists or not, Canex believes that the team is just a front for Weedmaps to claim plausible deniability.
Canex provided over 50 documents to regulators to support its claims while stating that some alterations have now been made on the Weedmaps site since it took those evidences in April. The executives claim that while some ads have been removed from the site, substantial action is still yet to be taken.
Validation by other evidence?
A concurrent analysis by MJBizDaily as of June 28 found at least 5 operators with listings with such violations on Weedmaps. These ads belonged to Bliss, Green Guest, PB Marijuana, Star Leaf, and Zippy Leaf. The analysis also confirmed that some of the analyses identified by Canex had been removed. Some ads used licenses that had already been declared stolen by their owners while some seemed to be illegally used franchise setups.
There were some operators who came out to defend their ads as legal companies. Drew Director, the manager of High Tide defended his brand by stating it was in a management agreement with DreamCali. The stated DreamCali is one of the companies outrightly stated in Canex’s complaint as being illegal. The same DreamCali doesn’t show up in the DCC database which leaves much to be desired as to the reality at hand.
Bottom line
The complaint by Canex has been filed already and it is only a matter of time before the concerned parties and regulators respond. Pending that time, the early writing on the wall does not favor Weedmaps as many factors point to them being complicit.
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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