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Opinion: Using science to create a winning marijuana industry

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Markus Roggen, president and chief scientific officer at Vancouver, British Columbia-based Delic Labs, will be speaking at MJBizCon’s Science Symposium on Nov. 15. His session is titled “R&D as a Business Tool: Maximizing Revenue by Focusing on the Scientific Method.”

There is great excitement within the marijuana industry about President Joe Biden pardoning thousands of people convicted on federal marijuana possession charges.

Even the Canadian stock market got excited about it, although share prices later retreated.

Which makes little sense, but it’s a nice break from the constant news of bankruptcies among Canadian cannabis companies.

Wherever I look, there is doom and gloom.

Large mainstream publications have even covered the cannabis industry woes across North America. This bombardment of bad news is in oversupply, like cannabis itself.

Naturally, the industry is raising the alarm, and the cause is easily found.

The laws legalizing cannabis across the continent were half-baked, contradictory and the government was too greedy with taxation.

That means it’s not our fault, right?

Not exactly. I learned a valuable lesson playing sports as a kid. Most of the time, it is your fault.

It is important not only to identify constraints but also think of ways that we can overcome them.

Here are five areas where the cannabis industry can improve:

1. This is not a legal version of the illegal market.

Cannabis professionals love to complain about long wait times for licensing, restrictive business rules and even overly picky inspectors.

But a legal cannabis market is very different from the illicit drug trade this industry is set up to replace.

For one, it does not have the crime or danger as say that of a Mexican drug cartel.

A legal market opens opportunities for new processes and products that require time, collaboration and investments.

2. Take a global view of specific problems, including taxation and testing.

It seems like complaint No. 1 by every cannabis business executive is high taxes.

Especially in the United States, where paying taxes is difficult and unfair, thanks to Section 280E of the federal tax code.

But taxes are just another cost.

An additional cost that many ignore is the price of production. We don’t have much power to influence the former, but the latter is squarely within our control.

One option is to cut wages or staff, which is a favored business tool. But there are better ways.

In our work, we have observed that every cannabis producer has inefficiencies.

Bad production methods waste hundreds of thousands of dollars every month.

One example might be running extraction equipment at 50% capacity.

The next most frequent complaint is the burden of compliance testing.

Yes, testing can be costly, but it also saves. And if we want to save, we should be testing more, not less.

Failed batches are also a cost of testing, and they are the main driver of overall testing costs.

By doing more quality-control testing before the cannabis product reaches compliance testing, failures will be caught early, and waste reduced. Better testing protocols would also help.

For example, we developed a pooled testing protocol for heavy-metal analysis, which could cut testing costs by more than 50%.

A byproduct of all the compliance testing is that cannabis effectively is an organically grown produce, while every year people die from contaminated lettuce.

Cannabis is safer than salad: That is a slogan we can proudly proclaim but have yet to use.

More testing is one thing, more tests are another.

By expanding the types of tests offered, cannabis products can be marketed in new ways.

We already know that THC is not the end all for product quality.

Terpenes are already getting more appreciation among consumers, and testing allows us to print terpene content on labels.

3. Don’t ask if you could, but if you should.

I see it as misguided to focus on the next/new/revolutionary thing in cannabis marketing, without doing the existing high-volume products right.

There are some outrageous products on the market that make you wonder “what were they thinking?”

CBD mascara and CBD pillows might sound ridiculous, but products with delta 8-THC have real potential to be dangerous.

Those products solve the problems of producers – namely what to do with all the CBD oversupply and tanked commodity prices.

They ignore the needs of the customer.

Economic theory teaches us that successful products solve a problem. So, which problems do consumers have?

Or, at least, which products are they actually buying and would benefit from improvement?

Sales of pre-rolls total $1.2 billion with a year-over-year growth rate of 39%. And infused pre-rolls, which make up 19% of all pre-rolls sold, have been gaining steadily.

The customer clearly wants more pre-rolls, and the industry has responded by offering them along with infused versions.

We should focus our efforts there and develop even better pre-roll products.

4. Ask an expert. It will pay off.

The cannabis industry is home to a range of professionals and characters.

A simplified timeline of people I’ve met at conferences is that in the mid-2010s there were a lot of legacy growers and civil rights activists.

Then, slowly, the legacy growers either turned to licensed production or retreated from the conferences.

Frontiersmen with a taste for exploration and the gold rush moved in.

These were closely followed by men in suits – lawyers and real estate professionals.

By 2020, the archetypical cannabis executive is a white male with a finance or law degree.

If these people and qualifications are the right fit for the industry, why is it doing so poorly right now?

It’s time to turn to a new crop of experts.

We need scientists and engineers to update production, processes and products to fit the 21st century market.

5. Pick the right story and stick with it.

Cannabis is praised as cure-all for illnesses and economic problems.

And the proposed benefits are as numerous and confusing as the stories companies are pitching.

Companies often position themselves as pharmaceutical companies, citing potential medical benefits of cannabis.

They are not pharmaceutical firms, not even close.

Even more perplexing is the fact that some of these same companies also sell recreational products.

This is as contradictory as Walgreens selling cigarettes.

How can we expect to develop informed and loyal customers, if cannabis companies, and even the industry as a whole, are jumping from one strategy to the next, constantly changing their values?

I see great danger in constantly pointing at the proposed health benefits of cannabis while pushing recreational products.

Here’s a tale of caution that I found in an academic paper:

“In the 15th century, when (it’s) use (…) by the indigenous populations in the New World was first observed by Columbus and the plant was brought to Europe, (…) this new one was used to treat a wide range of conditions. Indeed, (it) acquired a reputation as a panacea, to the extent of being called the ‘holy herb’ and ‘God’s remedy’.”

The title of this paper: “Medicinal uses of tobacco in history.”

The cannabis industry has great potential but currently falls short.

Instead of complaining, we should self-reflect and improve.

In short, stop complaining and start evolving.

Source: https://mjbizdaily.com/opinion-using-science-to-create-a-winning-cannabis-industry/

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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