Business
New year brings new laws, rules for cannabis businesses nationwide
With the start of a new year, cannabis companies across the country are tweaking their business models to meet changing laws and regulations that could affect sales and how they run their operations.
Expanded delivery, new packaging and labeling restrictions as well as the introduction of loyalty programs and deep product discounts top some of the biggest regulatory shifts underway in 2023.
MJBizDaily explored how these changes will affect businesses in several states with legal marijuana markets, including California, Michigan, Oregon and Utah, among others.
California
In the world’s largest marijuana market, California’s Department of Cannabis Control and state lawmakers approved several business amendments and laws that took effect in late 2022 or on Jan. 1.
Among the most influential in the retail space:
- Cannabis delivery vehicles can now carry $10,000 of product, doubling the previous amount.
- Vehicle inventory is no longer required to be allocated or pre-purchased. Under the former rules, delivery vehicles could have only $5,000 worth of product in it at any time, with $3,000 of that total pre-purchased, limiting inventory on routes. With no allocations set aside for pre-purchases, consumers will have more product choice on designated routes, an important factor given the traffic issues throughout California that slow deliveries and, ultimately, sales.
- Curbside delivery is now allowed at all licensed retailers.
- The collection of a 15% excise tax and payment to the state’s Department of Tax and Fee Administration shifts from cannabis distributors to retailers.
California consultant Hirsh Jain called the regulatory changes to delivery the most consequential policy development of the year.
“Delivery operators will be able to offer much more robust access to legal cannabis in California’s sprawling cannabis deserts,” said Jain, the principal of Los Angeles-based Ananda Strategy.
“They will also be able to carry a larger and more diverse selection of products, which better meet consumer needs, increasing demand within the legal market.”
Chris Violas, CEO of Orange County-based marijuana retail software maker Blaze, applauded the change to permanent curbside pickup and delivery, a system first enacted in the early days of the pandemic.
“I’m a big fan of omnichannel, really allowing the customer to choose where they order, how they order, where they pick up and how they pick it up,” he said.
“So reducing friction at any point on the transaction is really, really important.”
Vince Ning, founder and co-CEO of California distributor Nabis, said the excise tax shift will likely result in a near-term cash-flow crunch for retailers.
“As a result, operators will need to work together to mitigate these risks and avoid financial instability due to the abrupt nature of the transition,” he said.
Oregon
In November, the Oregon Liquor and Cannabis Commission adopted several rules aimed at improving testing standards as well as product labeling and packaging.
Marijuana producers will face hefty fines of up to $500,000 if their products pose a threat to public safety and up to $100,000 if labels contain “untruthful or misleading content.”
Under the new regulations, state operators must relabel product potency if audit testing determines discrepancies between the initial test results and follow-up findings, with violations escalating to potential product recalls.
In addition, testing labs are now required to retain samples for 30 days.
“Recalls are very expensive, so that’s definitely a concern for packaged good companies and brands across the state,” said Mason Walker, CEO of Takilma-headquartered East Fork Cultivars, a craft marijuana and hemp breeder, cultivator and product maker.
The new rules will have an impact on East Fork Cultivars.
The Takilma-based company in November acquired Peak Extracts, a cannabis extractor and product maker in Portland.
The purchase expanded East Fork’s product distribution to more than 400 retail outlets in the state, according to Walker.
In a potential boon for Oregon retailers, regulators lifted a ban on selling products below their wholesale cost while allowing customer-loyalty programs.
Before the rule change, stores were often stuck holding the bag if products didn’t sell or inventory piled up.
“Retailers are allowed to discount product down to a penny,” Walker said.
“I think we’re going to see a lot more aggressive discounting, so consumers should rejoice. They’re going to see lower costs for cannabis across the market this year.”
Utah
Medical marijuana dispensaries and manufacturers in Utah’s already restrictive MMJ market will likely face more retail challenges in the new year.
Among the new rules that took effect Jan. 1, cannabis product packaging, logos and brand names must be preapproved by the state’s Department of Agriculture and Food.
Retail operator Greta Brandt expects regulators to keep a watchful eye on product packaging, particularly regarding a requirement that logos can account for only 20% of a package’s face design.
“This is where we’re going to see a lot of change in how products are presented, as well as fluctuations as products may be pulled, reformulated and rebranded,” said Brandt, the president of The Flower Shop.
The company operates dispensaries in Logan near the Idaho border and Ogden, roughly 45 minutes north of Salt Lake City.
Michigan
In this market, what’s not taking effect will have significant fallout for some cannabis industry professionals.
Michigan marijuana operators had hoped three Republican-sponsored bills that gained bipartisan support for easing regulatory requirements would be signed into law in December.
But Democratic Gov. Gretchen Whitmer vetoed them all, arguing they were “rushed through a lame duck session,” according to media reports.
House Bill 5839 would have prevented regulators from denying license applicants based on their spouse’s job, including employment at state or federal government agencies.
HB 5871 would have granted MMJ companies more leeway in transferring and purchasing product, while also prohibiting background checks and fingerprint scans of an applicant’s spouse under certain conditions.
Douglas Mains, a cannabis attorney at Detroit-based law firm Honigman, said hesitant and concerned spouses have delayed the licensing process for several of his clients.
“Requiring the spouses of officers, owners or board members to submit to fingerprinting and background vetting when the spouse will have absolutely no involvement in the business can be an onerous and off-putting process that could preclude or deter some businesses or investors from entering the Michigan market,” he said.
“Additionally, we have had a number of clients who have applied for licensure while in the process of going through a divorce.
“In those cases, the applicant either had to wait to submit their application until the divorce was finalized or negotiate with their spouse to submit all of the required forms and documentation.”
Other markets to watch
Elsewhere, several states continue to refine their regulations, while others create entirely new frameworks.
In Colorado, House Bill 1020 would overhaul the state’s social equity program.
In New York, where recreational sales launched in late December, regulators have yet to finalize several regulatory policies and operational procedures, including product testing as well as government-supported property leasing and facility construction for social equity licensees.
Though Clark County, Nevada, approved consumption lounges in September, its most-populous city, Las Vegas, has not finalized rules and regulations for them, the Las Vegas Review-Journal reported in late December.
In late June, Nevada regulators approved their final regulations for 60-65 consumption lounges in the state.
Source: https://mjbizdaily.com/2023-brings-new-laws-and-rules-for-cannabis-businesses-nationwide/
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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