Business
Marijuana industry spends millions lobbying as shutdown threatens SAFE Banking
The cannabis industry continues to spend millions of dollars on high-powered lobbyists to sway U.S. senators to pass marijuana reform, but those efforts could be thwarted this fall by a government shutdown that threatens to upend Congress’ legislative calendar.
U.S. marijuana companies and trade groups spent more than $2.4 million lobbying the U.S. Senate in the first half of 2023, according to the most recent federal lobbying disclosure filings.That’s less than the $2.9 million spent on trying to woo the Senate over the second half of 2022, including the lame-duck session when cannabis banking reform seemed tantalizingly close.
But bipartisan squabbling over the bill’s final form – as well as a desire to secure more Republican co-sponsors to ensure SAFE Banking has the necessary 60 votes to bypass cloture – led to the Senate adjourning for August recess without that hearing.
Additional requests from companies that already have bank accounts are further complicating the picture.
Lobbyists for publicly traded cannabis companies have proposed adding language to SAFE Banking that would allow access to major U.S.-based exchanges, such as the Nasdaq.
Most cannabis multistate operators currently trade on the smaller Canadian Securities Exchange.
However, most Washington observers agree the major sticking points for such a proposal remain anti-money-laundering language as well as whether SAFE Banking can secure enough Republican co-sponsors to guarantee passage on the full Senate floor.
And lobbying records confirm the obvious: Though federal rescheduling and, eventually, a nationwide legal industry like Canada’s remain on the wish list, SAFE Banking is the marijuana industry’s top priority.
The marijuana “industry appears to be exclusively focused on SAFE to the exclusion of everything else, and, therefore, the members are responding accordingly,” said Don Murphy, a veteran Washington DC lobbyist and director of government relations for the Texas-based Marijuana Leadership Campaign.
Until SAFE passes, “nothing else,” such as rescheduling, “will have any juice,” he added.
“After all, if Congress can’t pass even the smallest of incremental reforms like banking, what hope is there for comprehensive reforms?”
Meanwhile, the Biden administration’s review of marijuana’s status under the Controlled Substances Act continues in the background, though it’s generally accepted on Capitol Hill that necessary reform will have to come from Congress.
And with SAFE Banking having repeated success in the House of Representatives but being stymied in the Senate, most attention has shifted to the Senate.
Top dollars
Marijuana industry spending reflects these priorities, as well as the issue’s urgency and the need to curry favor with well-connected Washington power players.
New York-based Curaleaf Holdings was the marijuana industry’s top spender on Capitol Hill with a reported $450,000 worth of lobbying activity, according to the most recent quarterly Lobbying Disclosure Act forms filed in late July.
The company paid for its in-house lobbyist, Matt Harrell, and also retained Denver-based Brownstein Hyatt Farber Schreck, one of the nation’s largest lobbying firms, according to records.
Ohio-based Scott’s Miracle-Gro reported spending $400,000 in 2023, with $180,000 of that spent on DC-based BGR Group’s government affairs team and another $100,000 on Brownstein.
Cresco Labs spent $250,000, hiring both Brownstein as well as DC-headquartered Putala Strategies, whose principal, Chris Putala, is a former Senate aide to President Biden.
Cannabis companies were also represented by dedicated DC-based advocacy groups, including:
- The Coalition for Cannabis Policy Education and Regulation, or CPEAR, whose funders include tobacco giant Altria Client Services. CPEAR spent $340,000.
- The National Cannabis Roundtable, which reported spending $330,500.
- The U.S. Cannabis Council, which spent $210,000.
Advocates and critics both point out that the marijuana industry’s spending on crafting friendly federal policy, while far and above past years, still pales in comparison to the cash splashed by entrenched special interests such as defense contractors and pharmaceutical companies.
“Markets are bad. There’s price compression. All the capital’s dried up. But we tell our counterparts: We know business is bad, but it’s either give up or get to DC,” John Sullivan, the chief lobbyist for Chicago-based Cresco Labs, told MJBizDaily in a phone interview.
“This is the only way to fix it.”
Dead after Christmas?
If Congress can quickly come to terms on a spending bill in September, that likely would allot plenty of time for a SAFE Banking markup hearing and vote in the Senate, said Reggie Babin, a former top aide to Sen. Chuck Schumer and now senior counsel at DC-based Akin Gump Strauss Hauer & Feld, another well-connected law firm retained by marijuana companies to represent their interests.
“I’ve always pointed to October as the most likely window to carve out a couple of weeks” for SAFE Banking, Babin told MJBizDaily in an interview.
“But that could be complicated if there’s a shutdown that costs you legislative days in the fall.”
If October passes without that hearing, there’s a definite time crunch.
Though some prominent voices such as Curaleaf chair Boris Jordan have said that early 2024 is a good time to pass SAFE Banking, several cannabis lobbyists speaking on background agreed the bill’s chances are greatly reduced if there’s no vote before the end of this year.
Curaleaf did not provide comment by the deadline for this story.
There’s also some feeling on Capitol Hill that marijuana reform is a mostly Democratic Party issue, meaning Republicans might be loath to contribute to what could be seen as a Democratic win in a presidential election year, one lobbyist said.
Also this fall, the industry should see the reintroduction of some more ambitious marijuana legislation such as the States Reform Act championed in past sessions by Rep. Nancy Mace, a South Carolina Republican.
That bill, which legalizes marijuana at the federal level but delegates many regulatory powers to individual states, could reappear in Congress as soon as next month, a Mace spokesperson said.
However, most of the attention and resources will continue to be spent on SAFE Banking, though the looming government shutdown is the main obstacle that’s out of the marijuana industry’s control.
And the longer SAFE Banking lingers in committee, the less likely any other reform remains.
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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