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Morocco, the European and African Gateway Country, Issues Ten Cannabis Licenses

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Morocco is strategically located to be a mass exporter and shipper of cannabis

Under the supervision of the National Agency for the Regulation of Cannabis Activities, established growers are now permitted to grow cannabis for export and industry in three northern provinces in Morocco.

Following the passage of a new cannabis law by parliamentary leaders last year, the Moroccan government granted ten licenses to farmers in the northern regions of Taounate, al-Hoceima, and Chefchaouen, where they will be allowed to cultivate and trade cannabis for industrial, medical, and pharmaceutical use. However, cannabis for adult usage remains illegal.

The 2021 Cannabis Law

In May 2021, the House of Representatives enacted the cannabis law with a resounding 119 votes in favor, 48 against, and no abstentions.

According to the law, cannabis may only be used legally for industrial and medical purposes, not for recreational use. Its goals include raising farmers’ wages and defending them against drug smugglers who dominate the cannabis industry and smuggle it illegally into Europe. In some nations, medicinal cannabis treats illnesses like epilepsy and multiple sclerosis.

According to the needs stated by the authorized industrial operators, permits will be gradually provided to farmers. The National Agency for the Legalization of Activities Related to Cannabis is still exploring the cannabis market’s potential to develop the industry further and encourage farmers to switch from illegal to legal, stable, and lucrative cultivation.

According to the news source, the 2021 cannabis regulation was created to protect local farmers from drug criminals who control the cannabis trade and transport it illegally to Europe. The law also aims to help the impoverished mountainous parts of Morocco, where marijuana was cultivated for decades but was outlawed in 1954.

Farmers in Morocco’s northern region make up about 4% of the final crop value in the black market. According to a study from Cannavigia, a Swiss compliance software company that aids in tracking and tracing cannabis along the supply chain in Europe, government authorities assert that a controlled market will permit those growers to earn 12% under the new law. The law also suggests that farmers establish cooperatives in the northern regions. This is to help take responsibility for negotiating contracts with producers to protect their rights, engage in sustainable agriculture, and buy high-quality seeds.

In the challenging growing climate of the country’s northern region, where other plants’ cultivation is not feasible, the Moroccan government estimates that at least 60,000 households on 55,000 hectares (approximately 212 square miles) rely on cannabis farming. According to the Moroccan Ministry of Interior, the new law allows for the inclusion of other provinces in the controlled market. However, this depends on the interest displayed by national and foreign investors in enterprises associated with the cannabis manufacturing chain.

International investment

The ministry of interior-affiliated state organization’s board of directors met for the first time in June. The ministry stated that the agency was entrusted with the implementation after the meeting. They are to practice the kingdom’s plan for the cultivation, production, manufacture, export and import, transformation, and marketing marijuana products for industrial, medical, and pharmaceutical uses.

The agency also oversees and monitors all phases of this legalized cannabis business, from producing seedlings to product marketing and research support. Additionally, it is envisaged that it will aid in luring international capital into the production of cannabis goods, turn smuggling networks into a thing of the past, and legalize sustainable cannabis farming.

Morocco is ideally situated to become a leading legitimate exporter because it is right next to Europe. According to data cited in Moroccan media, cannabis plantations occupy about 55,000 hectares in the country’s northeast region.

In research published last year, the Ministry of Interior estimated that the net income from cannabis grown for medical uses would be approximately $10,000 (110,000 Moroccan dirhams) per year. According to a research published by the Ministry of Culture and Communication media portal, Moroccan cannabis used for industrial and medicinal purposes may account for 10% to 15% of the market in Europe. This primarily would be foreign markets covering the Netherlands, the UK, Spain, and Germany. The country would earn approximately $420 to $630 million annually based on these two percentages.

The agri-food industry significantly influences the Moroccan population’s social and economic development. Refferig to the most recent data from the World Bank, the sector accounts for 39% of employment, especially in rural regions, and accounts for 21% of the GDP.

Will Moroccan Traditional Farmers Reap The Rewards?

Farmers in Morocco’s Rif Mountains, where large-scale hashish production has existed since the 18th century, worry that the government’s campaign against illegal production and the snail pace of granting permits may result in missed opportunities. Historically, the area has provided roughly 70% of the hashish used in the European black market.

However, Morocco’s domestic production and legalization initiatives are anticipated to claim a considerable portion of that market. Cannabis growers in Morocco are concerned about their future; Souad, a cannabis farmer in Azila, also believes that the government’s legalization initiative has not yet reported any positive results.

Souad, who is in her 60s, continues to grow marijuana alongside her sons. Although she is skeptical of the likelihood of success, she wishes that legalization will contribute to the wealth of her family and the underdeveloped Rif Mountains region.

The demand for Moroccan hashish has shrunk dramatically as cannabis reform initiatives in Europe gain traction. According to a 2021 interior ministry research, Moroccan cannabis producers’ annual income decreased from 500 million euros ($490 million) in the early 21st century to under 325 million euros ($319 million) in 2020.

Karim, a different producer in Azila, claimed that “the market has decreased substantially. Karim faced additional difficulties this year due to the worst drought the area had seen in decades. He could only cultivate a fraction of his family’s land this year due to the lack of water. Farmers are witnessing stepped-up government efforts to stop illegal production as they start to control Morocco’s cannabis market.

Conclusion

In its latest report, the UN Office of Narcotics and Crime warned against legalizing drugs, notably cannabis, for adult use. It claimed that while overall arrests for possession decreased, a rise in psychological problems, suicides, and hospital admissions ensued.

As with some other agricultural production, plant-based medicines can impact the soil and water, and their final manufacturing processes, including chemical processing and waste generation, can affect the air. This brought to light the environmental consequences of plant-based medicines. Morocco’s water and land resources are under more stress due to population growth and climate change —which has reached around 38 million people—than ever before.

Source: https://cannabis.net/blog/news/morocco-the-european-and-african-gateway-country-issues-ten-cannabis-licenses

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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