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New York spending $200 million on marijuana social equity properties

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New York is set to inject $200 million into the local marijuana real estate market, leasing up to 150 retail properties that will be given to social equity businesses to give them a leg up in the state’s new recreational market.

The move is believed to be the first of its kind in the U.S. cannabis industry, and, if successful, could provide a road map for other states rolling out social equity programs.

At least one brokerage firm, CBRE Group, is already scouting locations on behalf of the Dormitory Authority of the State of New York (DASNY), the agency overseeing the disbursement of the funds, a DASNY spokesperson confirmed in an email to MJBizDaily.

CBRE representatives are “looking for good retail locations throughout the state located in municipalities that have opted in to allow retail dispensaries,” according to the spokesperson, Jeffrey Gordon.

The brokerage firm declined to comment.

Ripple effects

While the DASNY said that no leases have been signed for social equity companies, industry insiders say the government’s entrance into marijuana real estate is causing ripple effects for other businesses – particularly smaller operators.

“They’re out there. They’re pounding the pavement,” Donny Moskovic, a real estate broker at Katz & Associates in New York City, said of CBRE agents.

Moskovic has been working with Cresco Labs – one of the state’s 10 existing medical marijuana licensees – to expand the Chicago-based multistate operator’s retail footprint in anticipation of the adult-use market’s launch.

Moskovic said there’s been a “frenzy” in the New York real estate market this year as entrepreneurs prep for the recreational market’s rollout, which could happen later this year.

“They’re everywhere. They’re looking at all locations,” Moskovic said when asked where CBRE is looking for retail spots.

He said CBRE is almost certainly already looking in every municipality that didn’t already opt out of legal cannabis sales, including New York City as well as upstate.

“If you speak to their broker, their broker tells you there’s $50 million in a fund, sitting there, already out of the $200 million, and they’re executing deals.”

The real estate support for social equity applicants has drawn praise for New York’s progressive approach to promoting diversity and increasing business opportunities for those affected by the nation’s war on drugs.

But it also has triggered concerns among local entrepreneurs and real estate brokers, some of whom contend that real estate agents working on behalf of the state might increase competition – and prices – for smaller operators also hunting for retail properties.

“It’s making it more competitive for the industry as a whole,” said Colby Piper, a New Jersey-based real estate broker who specializes in marijuana.

Piper, who’s been scouting locations for clients wanting to start adult-use companies in New York, noted the state hasn’t yet announced whether there will be mandatory setbacks between retail shops.

Mandatory setbacks make it hard for his clients to enter into long-term leases.

In addition, landlords often favor long-term deals with the state over leases with private businesses because the state is viewed as a more reliable a tenant, Piper said.

As a result, Piper is trying to steer clear of wherever he hears CBRE agents are scouting.

“When we find out, very quietly, where the state is looking, we can tell (our client), ‘This section might be too crowded; we should try the next block up,’” Piper said.

Program details

According to DASNY’s Gordon, the state’s fund hasn’t yet been allocated, nor has a manager for the $200 million been chosen.

He added that a pair of requests for proposals (RFPs) tied to the fund are on schedule:

  • Choosing a firm to select locations and sign tenant agreements – to be completed no earlier than June 20.
  • Picking a build-out firm to oversee construction at the leased locations – to be chosen July 11.

The money is also being spent solely for retail business locations, not for cultivators or other sectors, Gordon confirmed.

The properties will be leased for 10-year terms, with no actual purchases in the pipeline.

Gordon wrote that DASNY’s goal is to have the first social equity retailer open by the end of the year and to have all 150 locations identified by the end of the second quarter of 2023.

Unanswered questions

Several questions remain, including how successful DASNY will be in trying to lock down 150 retail locations in New York for 10 years with only a $200 million budget.

According to a May 13 news release, the $200 million will come from “licensing fees and revenue from the adult-use cannabis industry and up to $150 million from the private sector,” not from the state general fund.

“Depending on how they negotiate these deals, and when the actual rent triggers, it could be possible” to get 150 locations rented, Piper said.

“But if the rent triggers Day One or Month Two, and they’re paying rent before they have applications written or before the application window even opens, that money is going to burn down pretty quickly.”

Many retail locations rent for as much as $45,000 per month, Piper noted as a hypothetical example.

“If you’re paying $45,000 a month, that doesn’t give you many locations” with $200 million, Piper said.

There’s also a lack of clarity around the licensing process and the social equity program in general, stakeholders said.

So far, the state hasn’t announced how many adult-use licenses will be issued, although regulators have said that half the permits will be reserved for social equity applicants.

It’s also unclear when the licensing window will open, either for social equity companies or non-social equity businesses.

Furthermore, many entrepreneurs are awaiting the final state marijuana industry regulations.

Many believe they can’t make solid plans without first knowing the regulatory framework, Piper said.

“They’re writing the regulations in piecemeal,” Piper said.

“The people who are trying to secure space (for marijuana businesses) … are not able to get ahead of the game with a risk-averse strategy without having the regulations,” he said.

“If we’re looking at five spaces with an operator, and the regs come out and say you have to be a thousand feet from a church, then maybe those five locations won’t be there. We don’t know.”

However, Moskovic added that the New York real estate market is large enough that DASNY and CBRE’s efforts have not been a major disruptor for dealmakers like him. He also predicted it won’t be an issue for larger businesses.

Rather, it’ll likely be more problematic for smaller- to medium-sized companies that are looking at retail spaces that might suit social equity startups, Moskovic said.

By contrast, Moskovic hasn’t run into major issues helping Cresco Labs find real estate for its expansion plans.

“At the end of the day, there’s a lot of real estate out there,” Moskovic said.

Source: https://mjbizdaily.com/new-york-spending-200-million-on-marijuana-social-equity-properties/

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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