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New Mexico recreational cannabis supply challenges ease as production ramps up

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More recreational cannabis cultivation production is coming online in New Mexico, and new retailers are establishing the connections they need to secure supply.

At the same time, some warn that production could soon outpace demand and the coming fall “Croptober” outdoor harvest could flood the market and depress prices.

Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce, a 140-member, statewide organization based in Albuquerque, said the market has shifted dramatically in the past four to six weeks.

The wholesale price per pound is evidence of that, Lewinger said, where six to eight weeks ago a wholesale pound of flower was in the $4,000 range.

“Now it’s in the $2,200-$2,500 range, because there’s more availability and people have connections to support a vibrant wholesale market,” he said. “I think that’s only going to get better.”

Most recent state sales data shows that the market is gaining momentum, with sales for July at $40.3 million, the strongest since the adult-use program launched in April.

Despite a relatively small population of 2.1 million, New Mexico’s recreational marijuana market is expected to achieve annual sales of up to $125 million in 2022, growing to as much as $400 million by 2025, according to projections from the 2022 MJBiz Factbook.

The state calls the cannabis companies that carried over from the medical market “legacy producers.”

Those legacy producers helped to ease the transition from medical to recreational and keep the supply relatively steady, Lewinger said.

Another factor is the state increasing the allowed plant count from 1,750 marijuana plants per grow license to 20,000 mature plants per permit as of January.

A key dynamic is at play in the border areas – in particular, the south and east – where New Mexico borders Texas, which has only a very limited medical marijuana market.

“In the southern part of the state, places like Sunland Park and Las Cruces, I definitely see lots of Texas licenses plates at those dispensaries,” Lewinger said.

“Those communities near the border are working hard to leverage that.”

Ample supply

When New Mexico’s adult-use market started in April, some cannabis retailers opened up shop with little to no products to sell.

But supply is starting to catch up to demand and retailers are asking for better deals on wholesale cannabis, said Tony Martinez, co-owner of Lava Leaf, a marijuana cultivation operation in Aztec, New Mexico.

Wholesale pounds of flower are selling for about $2,750, down from about $3,500 in April, according to Martinez.

“There is definitely ample supply of flower,” Martinez said, adding that he went on a wholesale run last week and saw full shelves everywhere.

“The minimum variety I saw was probably 15 strains,” he said.

That’s without the fall harvest that’s on its way in October.

Martinez has been growing licensed cannabis in the state for seven years. Lava Leaf is growing about 2,500 plants, both outdoor and in a climate-controlled greenhouse.

As far as access, Martinez said that “the market doesn’t need more stores. It’s like you can’t throw a rock without hitting a dispensary.”

Retailers are making more connections with flower producers and diversifying their supply chain.

In the Farmington area, in the northwest part of New Mexico, a gram of marijuana is selling for about $13-$15 at a retail store, according to Martinez.

That relatively high price means some people are still driving across the border up to Durango, Colorado, for cheaper cannabis.

Ultimately, the legacy producers have a leg up on the marijuana companies that are trying to enter the market, according to Martinez.

The new companies are building out facilities, establishing connections, “everything from scratch, whereas the legacies just kind of got to roll into this program with a massive head start,” he added.

But that’s not a reason to get overconfident, according to Martinez.

“A lot of the legacies are going to burn themselves out,” he said. “Because they severely underestimated the competition.

“They thought, ‘We’re so far ahead, we can’t lose.’”

Demand met

Despite the initial concerns about long lines at retail stores and not enough supply when adult-use sales began, that wasn’t true for everyone.

So says Robert Jackson, executive director of Seven Point Farms, a legacy operator with a cultivation facility in Socorro and retail locations in Albuquerque, Cedar Crest and Socorro.

“The existing licenses were able to scale enough to meet demand,” he said. “But I would say just barely.”

Product variety and the availability of different strains did suffer some because of lack of supply, Jackson said, but that’s gotten better.

As for the wholesale market, Jackson said he’s seeing pounds of flower selling in the $2,500-$3,400 range, depending on quality. Flower is selling for $7-$20 a gram at retail stores in his area.

The average customer spends about $60 per transaction in his store, which is up about $12 per transaction since April.

Croptober looms

According to one of the major players in the New Mexico market, Duke Rodriquez, CEO and president of Ultra Health, based in Bernalillo, marijuana consumers are feeling the pinch of macro-level economic factors such as rising inflation.

That’s leading to a “deterioration” of the market, as customers are not as willing to spend as much at the retail level, he said.

“We’re seeing that deterioration actually accelerate,” Rodriquez said. “That should scare people.”

Even with the increased plant count, New Mexico’s cannabis growers are still not fully ramped up, according to Rodriquez.

“The reality is it takes time and money and effort to deploy those plants,” he said. “This plant cap was ridiculous, and it got us into a deep hole.”

Although there’s no question of access for customers in the state – as there are plenty of retailers, according to Rodriquez – that relatively high price per gram, at least $10, usually more, for flower, is preventing the market from really taking off.

That steep retail price is also helping to fuel a robust illegal market that can offer flower at much lower prices, Rodriquez said.

“We’ve seen a real enhancement of the illicit market,” he added. “They’re bringing in quality products.”

The legal market will be tested again this October, according to Rodriquez, when the fall outdoor harvest hits and prices drop. He anticipates he’ll be able to buy outdoor-grown flower for as low as $80 a pound.

“That reality hasn’t set in,” he said. “Cannabis is not a very kind lover.

“We’re going to break a lot of hearts in the fall.”

Source: https://mjbizdaily.com/new-mexico-recreational-cannabis-supply-challenges-ease-as-production-ramps-up/

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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