Business
States give marijuana data to Biden administration for rescheduling review
At least five states with medical marijuana programs have shared key data – including the products patients are using and how they are affected – with U.S. health regulators as part of the Biden administration’s review of whether to remove marijuana from the federal government’s list of the most dangerous drugs, MJBizDaily has learned.
The state data sent to the U.S. Food and Drug Administration and the Department of Health and Human Services (HHS) offers federal researchers a wider and deeper look into marijuana use and its medical potential than most peer-reviewed studies available to researchers, experts told MJBizDaily.
In sharing the data, officials hope to influence the ongoing federal review of cannabis’ status under the Controlled Substances Act (CSA), which still serves as an immovable barrier to long-awaited federal marijuana reform, including interstate commerce and tax relief.
President Joe Biden ordered the review last fall.
The process ultimately could lead to lower federal taxes for cannabis companies and better access to traditional financial services as well as legal interstate commerce and, possibly, federal marijuana legalization – although the final outcome is far from clear.
So far, Illinois, Maryland, Massachusetts, Minnesota and Utah have shared information with federal health regulators about marijuana use gleaned from their state programs, officials from those markets confirmed.
“This is going to be some of the most important data considered,” predicted Jahan Marcu, a published researcher who earned a Ph.D. examining the endocannabinoid system and is serving as scientific adviser to the Coalition for Cannabis Scheduling Reform (CCSR).
The CCSR is a collection of major multistate operators seeking to encourage rescheduling or descheduling marijuana.
States shared the insight into marijuana use and MJ products at the encouragement of the Cannabis Regulators Association, an organization comprised of government officials overseeing state programs.
The revelation that states are participating in the administrative rescheduling review offers a rare peek into that process, which federal health officials have kept a near secret so far, observers in Congress and on Capitol Hill said.
Asked previously what studies or data officials are weighing, spokespeople for the federal health agencies have declined to elaborate.
Separately, a spokesperson from the U.S. Food and Drug Administration did not respond to an MJBizDaily request for comment this week.
“So much money has been put into understanding the risks of illicit cannabis,” Marcu noted.
By comparison, there’s been very little research into legal commercial marijuana.
“With state-level data, you’re talking about what products people are using, any health effects – that information is so important,” he added. “In some ways, that’s what Big Pharma does.”
Surveys say
“We shared a subset of our data – minus any identifying information – with the FDA,” David Rak, the research manager at the Minnesota Department of Public Health’s Office of Medical Cannabis, told MJBizDaily via email.
“We collect data from our patients every time they go to make a purchase at a dispensary (Patient Self Evaluation), and offer an optional survey at fixed intervals (Patient Experience Survey).
“So, we have a fair amount of data to analyze.”
Minnesota’s data also includes reports of adverse events, such as prescription-drug interactions.
“In general, we’ve had very few adverse events reported,” Rak said.
According to Rak, the FDA has yet to respond to the states that shared information.
Massachusetts officials “submitted data and information to the U.S. Food and Drug Administration as part of its review of cannabis’s scheduling status, including conditions approved for medicinal cannabis use, cannabinoid profiles of medical-use products, and frequency and quantity of medical patient purchases from the medical-use market,” a spokesperson for the state Cannabis Control Commission told MJBizDaily via email.
“We look forward to continuing to work with our partners at the state and federal level to encourage additional research and data-sharing, and ultimately impact nationwide policy.”
Unique source
In an ongoing paradox that Congress has yet to untangle, current federal drug laws thwart and discourage research into cannabis.
The marijuana research bill that Biden signed into law last fall – drafted by one of the country’s most prominent anti-legalization organizations – has not yielded new research protocols nor new sources of research-grade cannabis.
Critics have told MJBizDaily that the research bill is failing by design.
Meanwhile, federal officials have repeatedly said more research is necessary before marijuana prohibition can be weakened or undone.
The little marijuana research that does go on in the U.S. typically examines cannabis grown by U.S. Drug Enforcement Administration-approved suppliers.
Experts agree this supply does not bear much resemblance to the marijuana available in state-legal medical dispensaries.
When determining a drug’s appropriate classification under the CSA, the FDA employs what’s called an “eight-factor analysis.”
The eight factors considered are:
In another demonstration of how marijuana’s legal status stymies research that could change that status, there are a limited number of peer-reviewed academic studies that the FDA would traditionally rely on for the eight-factor analysis process, said Gillian Schauer, executive director of the Cannabis Regulators Association.
“A number of state medical cannabis programs have rich data sources around patient use of cannabis, clinical recommendations for medical cannabis, adverse events (or lack thereof), and more,” she said via email.
“These data are typically not collected for academic or research purposes but rather for consumer safety, program improvement, and regulatory reasons.”
Those states that haven’t yet shared data are encouraged to do so, Schauer added.
“It is imperative that these data are shared with the FDA so they can conduct the 8-factor analysis with data not only from academia, but from what is happening in practice on the ground in states and territories.”
‘Nobody can really say’
In announcing his administration’s rescheduling review last October, Biden noted in a statement that federal law “currently classifies marijuana in Schedule 1 of the Controlled Substances Act, the classification meant for the most dangerous substances.
“This is the same schedule as for heroin and LSD, and even higher than the classification of fentanyl and methamphetamine – the drugs that are driving our overdose epidemic.”
For most laypeople as well as Biden – and many lawmakers and officials who have decried the conflict between state and federal MJ laws as well as the Nixon-era declaration that marijuana is more dangerous than heroin – the idea that cannabis should be reclassified from Schedule 1 is obvious.
Schedule 1 is the category reserved for drugs with a high potential for abuse and no medical value.
Less obvious is how far federal health officials will go in their recommendation, which is due to the DEA by the end of the year, and whether law enforcement officials will take heed.
“What nobody can really say is what the scientists (at the FDA and HHS) are going to look at and what will be persuasive,” said Andrew Freedman, a senior vice president at influential Washington DC-based law and lobbying firm Forbes Tate and the executive director of the Coalition for Cannabis Policy, Education, and Regulation.
That’s also true of scientific studies. “How persuasive they will find anecdotes at the state level, I think, will be harder to determine,” Freedman added.
“The other thing that’s going to confuse this analysis is, well, what ‘cannabis’ are we talking about?” he added.
“Are we talking about someone who uses shatter three times a day, or someone who smokes half a joint with a friend on a Friday night?
“Those are two different versions of risk. Cannabis is not one thing, even though it’s scheduled as one thing.”
Most experts agree that health officials are unlikely to remove marijuana from the Controlled Substances Act entirely.
That might satisfy some major cannabis companies, as the notorious Section 280E of the federal tax code – which bars marijuana operators from taking basic deductions for business expenses – does not apply to drugs classified Schedule 3 or lower.
But it won’t satisfy advocates or many regulators, whose state frameworks aren’t set up for drugs controlled at that level, which are typically sold at pharmacies.
“This data is going to be used to support some sort of showing that there is a medical benefit,” said Griffen Thorne, a Los Angeles-based attorney at Harris Bricken.
“Everybody knows there is some medical benefit, at least for pain if for nothing else.”
But will that convince federal regulators? It’s still anyone’s guess.
“It’s hard to deduce what the federal government is doing,” Thorne noted.
Source: https://mjbizdaily.com/states-give-marijuana-data-to-biden-administration-for-rescheduling-review/
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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