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Los Angeles mayor expected to pick new chief for city’s cannabis agency

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Los Angeles Mayor Karen Bass is shaking up leadership at several city agencies, including an expected management overhaul at L.A.’s cannabis regulatory agency – which oversees a roughly $1 billion marijuana market.

listing for an executive director for the Department of Cannabis Regulation (DCR) has been posted on the city’s employment website for several weeks, increasing speculation that interim director Michelle Garakian is on the way out.

The deadline for candidates to submit their applications is 4 p.m. PT Aug. 18.

The annual salary for the position is $155,681 to $276,075, according to the posting.

The DCR executive director oversees a staff of 55 employees and an adult-use marijuana market that generates about $1 billion in annual sales – on par with entire states that have established recreational programs.

Los Angeles’ program recorded first-quarter total taxable cannabis sales were $236,871,994, according to the California Department of Tax and Fee Administration.

Garakian is a longtime DCR insider and former aide to previous Mayor Eric Garcetti, who appointed her in March 2022 as interim Los Angeles marijuana czar.

Garcetti’s mayoral term ended in November 2022, opening the door for Bass, a Democrat and former member of the U.S. Congress who campaigned on affordable housing and homeless-shelter expansion in the mayoral election.

The homeless population in L.A. has nearly doubled in the past decade, with 42,000 living on city streets at any given time, according to estimates.

Some of the mayor’s early large-scale initiatives to house the homeless has already limited the DCR’s efforts to give social equity license holders and other retailers a greater role in the city’s cannabis industry.

The mayor’s office did not response to several MJBizDaily inquiries regarding the open executive director position at DCR and Garakian’s future.

DCR spokesperson Jennifer Marroquin, in an emailed statement, said: “The department supports and defers to the Mayor and the Mayor’s Office on these important decisions in relation to the city’s cannabis industry.”

Since Garakian replaced former executive director Cat Packer, the DCR has dealt with numerous challenges related to licensing, administrative setbacks, legal challenges and greater influence at City Hall, which has few marijuana industry advocates.

“There’s very few council members that are enthusiastic about the industry,” Solomon Rivera, chief of staff for Councilor Marqueece Harris-Dawson, told MJBizDaily in April.

Harris-Dawson is one of the few cannabis industry advocates on the City Council.

Goals and milestones

When Garakian took the post in March of last year, she told MJBizDaily her top priority was unclogging a bottleneck of cannabis business license applications and approvals as well as transitioning a glut of provisional licenses to annual licenses by Jan. 1, 2026, under state law.

She also hoped “to get back to the mission of the department, which is licensing,” Garakian said shortly after taking the role.

The DCR, for its part, has made some significant strides over the past few years under Garakian.

Among them:

  • Migrating more than 1,100 applications from the temporary licensing process to the annual licensing process.
  • As of July 31, 2023, issuing environmental-review letters to every business with temporary approvals to start the transition from provisional licensure to annual licensure at the state level.
  • Fully staffing the agency for the first time in its five-year history with a total of 55 workers.

Perennial problems and new challenges 

Despite the accomplishments, large-scale problems persist in L.A.’s marijuana industry.

While the DCR has issued more than 400 social equity businesses licenses, including more than 80 for retail – among the highest totals in the country – getting those licensees up and running has been difficult.

Only a handful of social equity retailers are operational today, as capital shortages and securing approved real estate remain perennial challenges.

More recently, Bass’ plan to build and retrofit thousands of single-family homes and multifamily units for the homeless is creating new obstacles for marijuana retailers and entrepreneurs searching for property in one of the nation’s priciest real estate markets.

Such dwellings – known as Permanent Supportive Housing (PSH) properties – are considered one of several “sensitive uses” under L.A. zoning laws.

Cannabis stores are prohibited from operating within a 700-foot radius of such properties.

L.A.’s vast network of unlicensed operators has continued to flourish as well, even with dozens of illegal stores shutting down throughout the city.

Of course, the illicit market has been an ongoing problem across California for years.

Law enforcement officials across the state have told MJBizDaily they do not have enough personnel or resources to limit the sheer number of unlicensed cultivation sites in the region.

Similarly, most serious marijuana-related criminal penalties – which used to serve as deterrents for many illegal operators – were thrown out in 2016 when California voters approved Proposition 64, the ballot measure that legalized adult use.

To exacerbate matters, the “DCR has no authority under local law to enforce against unlicensed activity … nor do we have any authority to directly influence how other city agencies prioritize their resources to address this issue,” Garakian told MJBizDaily about a year ago.

The agency, however, told MJBizDaily it has addressed 92% of all complaints received to date or referred them to the Los Angeles Police Department for further criminal investigation.

Source: https://mjbizdaily.com/los-angeles-mayor-expected-to-pick-new-chief-for-marijuana-agency/

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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