Business
Michigan wholesale marijuana prices stabilize for now after steep drop
Wholesale marijuana flower prices in Michigan have leveled off and ticked upward in recent months, offering cause for cautious optimism among producers who suffered as prices plummeted during the past few years.
Michigan is a key state market for legal marijuana, projected to rank second only to California this year in terms of annual recreational and medical cannabis sales.
Industry insiders attribute Michigan’s modest wholesale price stabilization trend to several factors, including:
- Absorption of last season’s glut of outdoor cannabis.
- More municipal governments permitting retail sales.
- Authorities cracking down on illicit activity in the licensed market.
If some players are “bringing in product that is not legal, not compliant, and selling it for pennies, essentially, it really has this really rough effect on the market, on pricing, (on) everything from flower to distillate,” said Narmin Jarrous, chief development officer at Livonia, Michigan-based vertically integrated cannabis company Exclusive Brands.
However, other factors are expected to continue putting downward pressure on prices: Michigan’s marijuana market remains home to significant outdoor production during the warmer months.
Also, Michigan has no statewide cap on the number of cannabis business licenses, making it uncertain whether the wholesale price stabilization will last.
Michigan’s adult-use market launched in December 2019, and in the early days, a pound of cannabis flower commanded an impressive premium propped up by tight supply and growing demand.
At the pinnacle of wholesale prices in February 2020, the average price per pound of flower was $3,883, according to sales data provided by New York-based cannabis wholesale platform LeafLink.
Michigan wholesale prices have yet to return to such lofty heights.
By February 2021, the average per-pound price for flower had crashed by 61% to roughly $1,510, LeafLink’s data shows.
Prices fell another 29% to $1,075 by February 2022, then slipped 27% year-over-year to $789 by February 2023.
For now, flower prices are on the upswing: The average per-pound wholesale price grew to $832 in April, $907 in May and $963 in June.
Still, memories of rock-bottom prices left a lasting impression on Michigan cannabis producers such as Rebecca Colett, CEO of Detroit-based cultivator and processor Calyxeum.
“Many cultivators were consolidating and closing, there was just so much surplus of weed on the market that cultivators were selling for $500 a pound, even $400 a pound – very crazy prices,” Colett said.
“And a lot of people couldn’t keep up.”
Shifting supply-demand equation
Legal cannabis retail sales in Michigan totaled $2.3 billion in 2022.
The 2023 MJBiz Factbook projects 2023 sales could be worth as much as $3.1 billion, including $220 million in medical marijuana sales.
With no statewide cap on the number of cannabis business licenses, Michigan has experienced “explosive license growth on both the supply and the demand side,” LeafLink strategist Ben Burstein said.
Burstein said a significant amount of cannabis retail came online in early 2020, alongside new cultivation licenses.
However, it took time for those new cultivators to “dial in their yields,” Burstein explained.
Wholesale prices stayed high for a time.
Meanwhile, the outbreak of the COVID-19 pandemic in early 2020 helped boost marijuana sales across the nation to record levels.
As capital flowed into Michigan’s legal marijuana market during the optimistic days of 2020 and into 2021, the number of cannabis business licenses swelled, Burstein said.
Meanwhile, existing cultivators were improving their yields and improving production capacity.
By late 2021, when the outdoor harvest came in, Burstein said Michigan “didn’t have enough demand to absorb that outdoor harvest. … And that’s when you see prices really start to fall.”
That wholesale flower price decline continued through 2022, once again exacerbated by the outdoor crop.
“(Michigan) didn’t have enough retail to internalize all of that additional supply of flower that came on during the outdoor harvest at the end of 2022,” Burstein said.
Some manufacturers turned that glut of flower into cannabis distillate and other derivative products, extending the oversupply issue to other product formats, he said.
Prices stabilizing, for now
The leveling and upward trend in Michigan’s wholesale flower prices for the past several months has different possible explanations, according to Burstein.
It has been months since the previous outdoor harvest, and much of that flower has been made into distillate.
Plus, some of the existing glut of flower has been bought up by consumers, he said.
Meanwhile, Burstein said, the volume of demand has increased relative to supply, in part because of seasonality but also as some local governments opt in to permitting cannabis sales and new retailers open.
Michigan’s most populous city, Detroit, launched recreational marijuana sales in January.
Another factor could be playing into the changing wholesale price trend in Michigan, according to Exclusive Brands’ Jarrous, who believes prices are “starting to stabilize.”
“And I think that’s in large part due to the increased enforcement action by the CRA,” she continued, referring to Michigan’s Cannabis Regulatory Agency.
“They’ve shut down several operators who had some illicit conduct that really affects the market and the pricing of the market.”
Calyxeum’s Colett observed that Brian Hanna, who was permanently appointed CRA chief in December 2022, is prioritizing enforcement.
“I do think one of the reasons that the prices dropped so drastically is because of some illegal activity that the CRA was not enforcing, and this new administration is just very enforcement-based,” she said.
Looking to the future
When wholesale flower prices were dropping, Michigan cannabis producers were forced to adapt to survive in the face of shrinking margins.
“We had to very quickly figure out how we can grow the same quality weed for cheaper,” Colett said.
For Calyxeum, the solution involved installing some automated production systems to help keep payroll expenses low and reducing packaging costs by seeking new vendors, ordering in bulk and investing in packaging machinery.
During the wholesale market’s lowest point, Colett said Calyxeum had to lower flower prices, “but we couldn’t cut them to $500, $700 a pound – we never went lower than $1,000,” Colett said.
These days, Colett said she can wholesale bulk pounds of flower for $1,000-$1,200 per pound and prepackaged eighths for $1,600-$1,700 per pound.
“I think the summer is really going to be a great time for cultivators to really make some money, because a lot of the outdoor grows got started late this year, just because of the weather,” Colett said.
“… I think there’s going to be a little bit of a (production) drought this summer, which is going to allow us cultivators to charge a little bit more premium, like we did during the pandemic.”
Looking forward, Exclusive’s Jarrous hopes that as Michigan’s still-young market matures, “we do see people stop panic-lowering their pricing, panic-reacting to the market.”
“I think once people feel more comfortable and confident in the industry, things will stabilize, as long as we continue to see support from the state agency,” she said.
Highlighting the seasonal nature of cannabis supply in Michigan, LeafLink analyst Burstein said he expects another hefty outdoor harvest later this year.
Plus, he said, the state has issued more cultivation and processing licenses since last year.
“With these newer licenses, you’re probably going to have higher plant counts, and again, you’re probably going to have really high supply relative to demand towards the end of the summer this year,” he said.
Even with more retailers open to sell that supply, Burstein expects that, with “one to two years of supply in the market, (retailers) just simply can’t go through (it) in a short enough amount of time, and prices are going to go back down.”
“So it’s seasonal in the industry, especially in markets with a lot of outdoor capacity exposure, for prices to start going back up around this time,” he said.
Colett said Calyxeum is “excited to start to improve our margins, but we’re still going to operate very lean, because I don’t know what’s going to happen in the fall – so we’re just trying to be very conservative right now.”
Source: https://mjbizdaily.com/michigan-wholesale-cannabis-prices-stabilize-after-steep-drop/
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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