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Minnesota hemp edibles law ushers in new rivals, upends marijuana market

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Minnesota’s two medical marijuana providers suddenly face droves of new rivals thanks to a groundbreaking state law that allows the sale of intoxicating hemp-derived THC edibles in mainstream retail outlets such as grocery and convenience stores.

The law – passed by state lawmakers in May – unleashed a cannabis boom when it took effect July 1 and reshaped the Minnesota market into what is likely the only one of its kind in the nation.

In effect, the sale of hemp-based, THC-infused food and drinks amounts to what is an adult-use marijuana market.

At the same time, Minnesota’s two licensed medical marijuana providers – owned by Verano Holdings and Green Thumb Industries (GTI), both based in Chicago – now confront an unknown and unlimited number of retailers peddling intoxicating hemp-derived edibles.

Moreover, the reinvigorated market is attracting interest from out-of-state hemp farmers and manufacturers.

Under the new law, essentially anyone with the money can set up shop and sell the hemp-derived products.

“The odd thing about our new law is there’s no license requirement whatsoever, so you don’t need anyone’s permission to start selling,” said Jason Tarasek, founder of the law firm Minnesota Cannabis Law.

“If you can afford to rent a storefront, you’re ready for business.”

By contrast, Verano, which owns Green Goods-branded dispensaries, and GTI, which runs Rise stores, together operate only 14 MMJ retail outlets across the state.

In addition, the two Illinois-based companies are a month behind the hemp retailers in selling edible products.

While hemp-derived edibles went on sale July 1, Verano and GTI weren’t allowed to start selling marijuana-based edibles until Aug. 1.

“This may be a competitive setback for them in the short term,” Tarasek said, adding that a variety of new providers of hemp-derived edibles are likely to enter the market.

“You’re going to see consumption lounges. Bars … will start offering THC products right in their main area or perhaps have a little satellite THC area.”

Endless opportunities?

The new law allows both delta-8 THC and delta-9 THC products as well as other intoxicants derived from hemp.

It also limits the hemp-derived intoxicants to 5 milligrams of THC per serving, with a maximum of 50 milligrams of THC per package.

Other restrictions include:

  • Edibles must be in childproof and tamper-evident packages and carry the label, “Keep this product out of reach of children.”
  • Products can’t be “modeled after a brand of products primarily consumed by or marketed to children” or “packaged in a way that resembles the trademarked, characteristic, or product-specialized packaging of any commercially available food product.”
  • Products must be tested for mold, heavy metals, pesticides, fertilizers and solvents.

But since sales of the THC-infused edibles began, there has been an onslaught of demand from consumers, said Steven Brown, the CEO of retailer Nothing But Hemp and a co-founder of the Minnesota Cannabis Association (MCA).

That, in turn, has given immediate rise to a slew of entrepreneurs looking to capitalize on the wave of edibles-hungry Minnesotans.

“There’s definitely a miniature green rush,” said Brown, who has become both a retailer and a wholesaler of hemp-based, THC-infused edibles.

“The opportunity is endless right now.”

Combine that with a low entry threshold plus a surge in demand from Minnesotans, and the state is experiencing a cannabis revolution, according to Brown.

“What’s really nice about this is it gives the opportunity for minorities and low-income people to actually have an opportunity in the cannabis industry,” he added.

However, those opportunities already are facing limits.

Several Minnesota municipalities have imposed moratoriums on cannabis edibles, and others are considering bans.

Marijuana edibles, too

The edible products that Verano and GTI were allowed to begin selling on Aug. 1 are derived from marijuana versus hemp.

That change, implemented by regulators, was announced last December.

Verano and GTI have an advantage over their hemp counterparts in at least one respect: THC potency.

The two multistate operators are allowed to sell up to 100 milligrams of THC per edibles package, with 10 milligrams per serving.

That’s twice the potency limits of the hemp-derived edibles.

Spokespeople for Verano did not respond to MJBizDaily requests for comment.

A GTI spokesperson declined to comment to MJBizDaily.

But a GTI spokesperson told TV station KIMT that an advantage to regulated medical marijuana edibles is their proven lab-tested quality assurance, which means consumers know their products are free of contaminants.

The Minnesota medical marijuana market is projected to hit $70 million to $90 million in sales this year, excluding hemp-based edibles, according to the 2022 MJBiz Factbook.

That’s up from an estimated $60 million to $75 million in 2021.

The start of hemp-based edibles sales overshadowed the marijuana edibles launch, in part by beginning a month earlier.

That might have given hemp-focused businesses such as Brown’s a leg up with consumers, said Tarasek, the Minnesota attorney.

But, he added, “I don’t think it’s any secret that our two medical marijuana manufacturers are here, biding their time, waiting for the adult-use marijuana market to open.”

It’s unclear if and when the state might approve adult-use sales, however.

Legislators have so far failed to agree on legislation, and industry insiders are divided on whether full legalization will happen in the near future.

Once that comes to pass, Tarasek believes, it’s Verano and GTI that are really positioned to be the big winners.

Either way, the future holds more cannabis regulatory changes, Tarasek and Brown agreed.

“Give it another six months. There’s going to be some real regulation behind hemp-derived THC,” Brown predicted.

When lawmakers return to the state capitol next year, Tarasek said, they could simply take the hint from their constituents and decide to fully legalize recreational marijuana: But that will entail the enactment of new rules – and probably taxes – for the hemp supply chain.

“The Legislature is going to need to address that,” he said, “and when they revisit that in January, they may just decide it’s time to legalize everything and make sure that there’s a regulated market, that kids can’t get their hands on it, and that we’re capturing some of the tax revenue.”

Out-of-state participants?

Another winner in the new Minnesota cannabis market are hemp farmers and edibles makers from out of state that are well-positioned to supply CBD stores and other retailers with the new types of hemp edibles, since all hemp is federally legal and can be shipped anywhere in the nation.

Both Brown and Tarasek said they’ve heard from out-of-state business interests offering to help restock shops that have sold out of hemp-based edibles.

“They sold out of inventory in a matter of hours,” Tarasek said of Twin Cities-area CBD stores that sold hemp gummies on July 1.

“It’s been a matter of connecting them with more inventory.”

Brown said he’s had conversations with out-of-state marijuana manufacturers that are exploring the possibility of entering the Minnesota market, in part because there aren’t many existing companies that can handle the new demand.

“What I’ve been hearing is there’s a lot of out-of-state marijuana companies that have an interest in coming into the state and working in the hemp-derived industry,” Brown said.

“There are just so many companies interested in selling these products.”

Source: https://mjbizdaily.com/minnesota-hemp-edibles-law-might-hurt-medical-marijuana-market/

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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