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Opinion: How cannabis brands can drive innovation as functional products

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Within the past two years, growing public health concerns and the proliferation of personal wellness products have created more health-conscious and proactive consumers.

Recent market research indicates that 70% of consumers currently use food products for specific functional benefits to support their mental and physical well-being.

As more consumers prioritize their holistic health, this presents a timely opportunity for the cannabis industry to create tailored formulations that cater to these evolving and varied preferences.

Considering how cannabis will only become more accessible in the years to come, brands have the ability to develop full-day product experiences that showcase the plant’s diverse applications.

Moving forward, brands can shift their focus away from conventional THC and CBD products and harness the power of relatively untapped terpenes and minor cannabinoids.

Embracing cannabis’ latest role as a functional product and creating customized offerings to support sleep, performance and rest can make the industry more approachable to new audiences and open the door to more scientific research around the benefits of the plant.

Formulating for sleep

Millennials currently represent the largest share of cannabis consumers in the United States, and brands should pay close attention to their lifestyle habits when developing new products.

Notably, millennials experience extremely high stress levels and struggle with sleep disorders.

As a result, millennials use sleep aids more often than their baby boomer and Gen X counterparts.

To reach this niche-yet-growing demographic, brands should consider formulating products with specific cannabinoid ratios, terpenes and functional additives specifically designed to optimize sleep.

Our company’s research teams have found minor cannabinoids such as CBN and CBG especially effective when paired with terpenes such as nerolidol and linalool, as well as functional ingredients such as holy basil and magnesium.

Pairing these cannabinoids with terpenes might lead to products that help consumers gain much needed rest.

If mainstream sleep-market growth continues to increase by nearly 6% annually and reach $46.5 billion by 2025, brands must find creative ways to translate this demand within the cannabis sector.

Carving out the market 

Consumers are not only seeking out products to help them relax, but they are also looking for offerings that enhance mental and physical performance throughout the day.

This is reflected in the rising demand for energy drinks – a market projected to reach $99.62 billion in five years.

This level of growth comes as no surprise when considering how these products are marketed for everyday activities ranging from studying to working out and even gaming.

While this is a relatively new frontier within cannabis consumer packaged goods (CPG), recent studies have identified minor cannabinoids such as THCv that can increase energy metabolism.

Additionally, terpenes such as beta-caryophyllene, limonene and pinene can enhance focusincrease energy and improve cognitive function, respectively.

These energizing cannabinoids and terpenes will be especially valuable in the future as fewer consumers purchase sugar-sweetened beverages.

Brands that seize this opportunity could introduce an innovative category of new products that propel cannabis into the mainstream spotlight.

Embracing ‘Cali sober’

Of course, holistic wellness requires a balanced lifestyle, which means consumers are also shopping for products that can help them unwind after a hectic day.

In many cases, cannabis-infused beverages have become a go-to nightcap.

Approximately 45% of adults reportedly opted for cannabis over alcohol during the height of the pandemic.

Since then, cannabis beverages have steadily grown in popularity, and recent innovations in emulsion technology, along with more consumers seeking healthier ways to decompress, will continue driving this trend.

Consequently, cannabis brands can develop new products featuring specific terpene blends that can deliver a similar relaxed buzz.

Products high in terpenes such as myrcene and limonene might create both relaxing and euphoric experiences.

Ranging from cocktails to tonics, infusion technology has made way for the development of sweet, invigorating beverages along with low-calorie drinks that appeal to a variety of consumer lifestyles and dietary preferences.

Minor cannabinoids and terpenes are the future

Over the past decade, the U.S. cannabis industry has demonstrated its potential as the next CPG sector.

However, those who have invested their time, effort and energy to develop the space into what it is today cannot become complacent or stagnant.

Instead, companies must look toward the future and directly address growing consumer demand for everyday functional products.

Achieving this goal will require market leaders to shift their focus to terpenes and minor cannabinoids that can create novel cannabis experiences.

This is a valuable opportunity that cannot be overlooked, especially considering how the terpene market is expected to grow at a compounded annual rate of 6.4% in the next five years.

Cannabis has a myriad of functional and holistic wellness applications, and brands must make a concerted effort to showcase these benefits to the mainstream, health-conscious consumer.

Austin Stevenson is the chief innovation officer at cannabis ingredient manufacturer Vertosa, based in Oakland, California.

Source: https://mjbizdaily.com/how-cannabis-brands-can-drive-innovation-as-functional-products/

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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