Business
Rhode Island set to launch adult-use cannabis market seen hitting $300M in sales
Mother Earth Wellness in Pawtucket is one of five medical marijuana dispensaries in Rhode Island preparing to transition to adult-use sales on Thursday. (Photo courtesy of Joe Pakuris)
Rhode Island’s long-awaited shift to adult-use cannabis sales finally arrives Thursday in the nation’s tiniest state, a market that is expected to generate $300 million in sales within a few years.
Within New England, Rhode Island’s transition to adult-use retail follows Vermont’s recreational launch in October.
It also precedes neighboring Connecticut, which aimed to open its market by year’s end. That timeline, however, was likely kicked into 2023 because of regulatory-related delays and setbacks.
Rhode Island’s quick rollout – lawmakers approved recreational sales only six months ago – has presented some technical challenges but also some budding opportunities for dispensaries and suppliers to recapture business lost for years to neighboring Massachusetts.
In another deviation from the norm, the vast majority of Rhode Island’s municipalities authorized adult-use retail before the launch of sales.
Despite the opt-ins, the nation’s smallest state by landmass will roll out adult-use sales with only five licensed retailers.
They paid a premium to expand their customer base beyond medical marijuana patients.
The five recently approved businesses were:
- Aura of Rhode Island in Central Falls.
- Greenleaf Compassionate Care Center in Portsmouth.
- Mother Earth Wellness in Pawtucket.
- Thomas C. Slater Center in Providence.
- Rise in Warwick.
“We’re very excited for recreational to open up. We think it’s going to be huge,” said Joe Pakuris, co-owner of Mother Earth Wellness, which opened its doors as a medical marijuana dispensary Nov. 18.
Rhode Island’s adult-use sales are expected to total $80 million within the first year and $300 million by the fourth year, according to MJBizDaily projections.
The market will open with 33 of the state’s 39 municipalities opting in, or nearly 85%.
It represents one of the highest, if not the highest, percentage of opt-ins by municipalities among any recreational market, according to MJBizDaily research.
By contrast, in California, the nation’s largest market, only about 40% of cities and counties are opting in for adult-use sales – and that’s one of the reasons the state’s underground market has thrived after legalization.
Voters in 31 Rhode Island municipalities earlier this month weighed in on legalization through ballot measures.
Recreational marijuana sales were rejected in Barrington, East Greenwich, Jamestown, Little Compton, Scituate and Smithfield, according to Providence TV station WPRI.
Cities that had already approved medical cannabis – including some of the state’s most populated, Cranston, Pawtucket, Providence and Warwick – were barred from opting out, a distinction a distinction that’s quite different than other marijuana markets.
The state will allow up to 33 adult-use stores, which must pay a 3% local tax on recreational cannabis sales and a 10% retail excise tax.
Cities that ban sales are not eligible for cannabis-generating tax funds.
Transitioning to adult-use sales
Rhode Island’s evolution into recreational sales is somewhat contradictory.
On one hand, the state was among the first to establish a medical market with the introduction of so-called compassion centers in 2009, a system largely unchanged until recently.
The Legislature first approved the use of medical marijuana in 2006 but didn’t vote on adult-use sales until 16 years later, when the House and Senate overwhelmingly approved a law change in May.
That solidified Rhode Island as the 19th state to legalize recreational marijuana, ending one of the last holdouts in New England.
New Hampshire is now the last outlier in the region.
The transition from outright legalization to establishing a regulated market took only six months, “marking the Northeast’s fastest implementation period,” Matt Santacroce, interim deputy director of the Rhode Island Department of Business Regulation, said last week in a news release announcing the licensed dispensaries.
That greenlight gave regulators and operators a relatively short window to implement Metrc, a seed-to-sale tracking software utilized in dozens of cannabis markets across the country.
Aura had only six to weeks to integrate the software and update its inventory as regulators worked out technical glitches and bugs.
“It is one of our concerns being that it’s such a complex integration systematically,” Aura operations manager Andrew Croan said.
The Rhode Island market will launch with a supply chain of nearly 70 licensed cultivators, processors and manufacturers, Democratic Gov. Dan McKee said last week.
Approved dispensaries contacted by MJBizDaily don’t expect inventory shortfalls at the initial rollout.
“Between them all, we should have enough product,” Croan said.
“It might get a little bony after the first three months here with the cycle of the plant, but I don’t think our shelves will be dry.”
Mother Earth features flower strains from more than 30 cultivators and operates a 10,000-square-foot cultivation center at its vertically integrated headquarters minutes from the Massachusetts state line.
“Cultivators have all been waiting for recreational to come on board,” Pakuris said. “This has just given time for everybody to refine what they do and get better.”
Mass opportunities
Rhode Island residents and visitors have been purchasing adult-use cannabis products at nearby MJ retailers in Massachusetts for four years.
Pakuris expects that to change in the coming weeks and months as local support increases, helping state operators recapture lost business, build new revenue streams and improve margins.
“We’re anticipating to actually get back 50% of the people that are going to Massachusetts once they see the great product offering here in Rhode Island,” he said.
Aura – located in Central Falls, the state’s smallest city at just over 1 square mile – sees only about 25 transactions per day. Two other marijuana retailers are within four miles, one in Rhode Island and one in Massachusetts.
“That is way lower than we anticipated,” Croan said. “The increased foot traffic is what we’re excited for most.”
Rhode Island had 16,552 active medical patient registrations through June 30 – the end of its fiscal year – although that number could be misleading.
Under its medical program, out-of-state patients could purchase marijuana with another state identification card or license.
That allowance, now prohibited under the adult-use program, likely inflated the number of actual patients who purchased cannabis regularly through compassion centers.
Meanwhile, nearby retailers in Massachusetts routinely log a few hundred daily transactions, according to Eric Robichaud, who runs an accessories business that sells smoking devices, grinders, rolling papers and other products to hundreds of stores nationwide, with a concentration in the Bay State.
He welcomes the added exposure accompanying Rhode Island’s recreational sales launch Thursday.
“We can be in all these smoke shops and do a certain level of business, but the foot traffic in dispensaries is just a whole other level,” he said.
“Going full rec is going to drive the traffic. Like an entire order of magnitude.”
Croan expects a festive atmosphere and celebrations throughout the state Thursday.
Aura is bringing in food trucks and live music to help entertain visitors on an expected busy day at the counter.
Weather should accommodate as well with temperatures expected in the low 40s.
“This has been a long time coming for Rhode Island,” Croan said.
“I hope everyone’s just as super stoked as we are.”
Source: https://mjbizdaily.com/rhode-island-set-to-launch-recreational-cannabis-market-thursday-dec-1/
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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