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Marijuana companies wade into Twitter advertising with mixed success

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It didn’t take long for the first marijuana advertisements on Twitter to get shut down.

On the first day the social media platform accepted cannabis ads in February, Hemper Co. Chief Marketing Officer Angel Ferrer set up an account and posted an ad for the Las Vegas-based company’s subscription boxes filled with a variety of cannabis accessories.

Twitter disabled the account three hours later.

“I wasn’t running anything that I thought should have been disabled,” said Ferrer, whose company sells boxes filled with everything from bongs and dab rigs to rolling papers and cleaning supplies.

“We weren’t showing smoke – we had a product with a box. It’s not like they even reached out and offered direction.”

Despite the disablement of his first Twitter ad, Ferrer said he’ll continue experimenting with the platform.

“We want to spend the money, and we know advertising is drying up on these platforms,” Ferrer said. “Our money is green just like everyone else’s.”

Earlier this year, San Francisco-headquartered Twitter became the first major social media platform to allow cannabis advertising, although advertisers face numerous restrictions – as companies such as Hemper are learning.

For starters, cannabis companies must have prior authorization from the platform and meet other requirements, such as being licensed in the states in which they operate and targeting only people who are at least 21 in those markets.

While Twitter prohibits the promotion of drugs and drug paraphernalia, it permits businesses to promote their brands and services.

To jump-start cannabis ad sales, Twitter is offering a six-week advertising incentive for cannabis brands.

The company said it will match new ad spending up to $250,000 on a one-to-one basis. The special offer runs through March 31.

Curaleaf takes the plunge

Kate Lynch, executive vice president of marketing for Massachusetts-based multistate operator Curaleaf Holdings, said she’s excited to have a new channel to promote the company’s products and launched an ad campaign on Twitter out of the gate.

The campaign displayed a vividly colored pulsating backdrop with the text “Cliq it for better cannabis.”

The ad ran for two weeks so the company could test whether it would result in clicks to its website. Lynch said the team will create new content and revive the ad soon.

“We see this as a strong brand-awareness play for us,” Lynch said. “We’re getting millions of impressions and clicks.

“What we’re not seeing is those clicks turning into sales, but that’s not the purpose of the campaign. The purpose was to get more eyeballs on Curaleaf.”

Purple Rose Supply, a Las Vegas-based maker of cannabis molding kits for making joints and cigars, also decided to test advertising on Twitter.

The company’s video ad, which wasn’t approved by Twitter, was aimed at revealing which burned faster – a joint or a cannagar (cannabis cigar) rolled with one of its devices.

“It didn’t go through because it may have been ineligible,” said Raveena Cheema, Purple Rose’s chief marketing officer.

And like Curaleaf, Purple Rose is measuring success by the click-throughs from the ad to the company’s website, Cheema said.

About 25% of Purple Rose’s budget is devoted to marketing, but Cheema said it’s too soon to tell how much of that will be earmarked for Twitter ads.

“When a platform opens up and allows something like this, we should take advantage of it,” she said. “I think there’s a lot of potential, but it’s just too early.”

Will other platforms follow?

Some industry experts say other social media platforms are likely to follow Twitter’s lead.

“There’s always fear of missing out,” said Rosie Mattio, founder and CEO of New York-based cannabis public relations and marketing firm Mattio Communications.

“They all track each other. Real ad dollars are being spent, and advertising on social networks across the board is down.”

But the question remains: Will cannabis companies see a return on their investments?

And that’s difficult to measure.

“You can’t click and buy, but you can direct people to stores for events, education days and promos,” Mattio said. “You can facilitate a sale without facilitating a sale on the platform.”

Many people surmise that platforms such as Facebook and Google – both of which are part of publicly traded companies – will not allow marijuana advertising until the plant is federally legal.

Twitter’s status as a public company changed when billionaire Elon Musk purchased it and took the business private.

“It’s a new platform that can be tested,” said Lisa Buffo, founder and CEO of the Cannabis Marketing Association.

“Smart marketing is doing what you know works and taking calculated risks on new channels.

“Now there’s something more mainstream to reach a new audience – you can test the new platform to determine whether it’s effective.”

Google’s ad platform recently loosened restrictions on hemp and CBD advertising in select markets but still excludes a lot of other cannabis marketing.

While companies such as Curaleaf and Purple Rose can determine how many clicks they got on their websites because of their Twitter ads, they can’t tell whether they’re converting to sales.

Tracking sales

That’s where companies such as Jane Technologies come in.

The Santa Cruz, California-based company powers e-commerce for about 3,000 retailers and brands.

Twitter can show its advertisers how many views, impressions and clicks an ad generated, but Jane can show them how many went to the store to make a purchase, said Socrates Rosenfeld, co-founder and CEO of Jane.

“It comes down to return on investment,” Rosenfeld said.

“We can consult with retailers and brands and show them exactly where they should be putting their dollars based on how much return they’re getting in the form of a sale.”

Cannabis companies advertising on Twitter must try to create awareness about their products and services without selling them directly, Buffo said.

Buffo said effective ads are simple and have a clear and concise message as well as a dedicated call to action aimed at achieving a particular goal.

“Say you have a blog post that tells the story of the brand,” she said.

“You can include a button in the ad that says, ‘Learn more’ to direct people there. If you’re selling T-shirts, you can have a button that says, ‘Buy now.’

“It’s essentially what you see on a button that tells you what to do.”

The average cannabis business’ annual marketing budget is $50,000 or less, and that operator is under more pressure to show a return on investment than mainstream companies, Buffo said.

“Even if they’re going to spend on new platforms, they’re running small tests to see if it works,” she said.

“The No. 1 thing they’re concerned about is targeting adults in legal markets, and it falls on the brand to establish that.”

Curaleaf’s Lynch said it’s also important to be open-minded, nimble and creative when it comes to driving value with your advertisements.

“At the end of the day, it’s all about education,” she said. “The more we can educate people about high-quality, safe cannabis product, the better off everyone will be.

“This is a nod toward normalization and acceptance.”

Source: https://mjbizdaily.com/cannabis-companies-have-mixed-success-advertising-on-twitter/

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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