Business
Supply concerns overhang New Jersey recreational cannabis market
Despite a relatively smooth start to recreational cannabis sales in April, industry officials in New Jersey continue to fret over possible supply shortfalls that could disrupt the East Coast’s newest adult-use market.
Some, in fact, argue the supply crunch has arrived. Industry officials have already reported long lines at dispensaries and low supplies of concentrate-infused products.
“At this point, New Jersey has been rapidly depleted, and I don’t see a whole lot of other grows,” said Steve Schain, a New Jersey-based cannabis attorney with Smart Counsel.
“Opening a dispensary is one thing, but opening a grow is quite another, which is what we need to have.”
According to industry officials, prospective growers face a host of obstacles that are crimping the flow of marijuana to retailers, including:
- Pandemic-related delays in the licensing process.
- Resistance to the industry at the local level.
- Difficulties securing real estate.
- The months it takes to plant and grow cannabis.
- Global economic issues such as inflation and supply-chain problems that are slowing construction of new cultivation facilities – and making them more expensive.
“We are going to be in a bottleneck anywhere from the next maybe six to 12 months, maybe even longer,” said Robert DiPisa, co-chair of the cannabis practice at New Jersey-based law firm Cole Schotz.
The prediction comes as the state’s marijuana supply chain ramps up to meet strong consumer demand in what is forecast to become one of the nation’s largest adult-use markets.
The 2022 MJBiz Factbook projects the New Jersey adult-use cannabis market will generate $625 million-$775 million in retail sales this year and will grow to $2 billion-$2.4 billion by 2026.
Small number of cultivators
Seven of New Jersey’s 13 existing medical marijuana cultivators were permitted to sell adult-use products on the promise that MMJ patients would be prioritized if supply runs low.
Regulators, however, believe that promise hasn’t always been kept.
Five of the seven were recently fined for selling adult-use products during hours reserved for MMJ patients.
From the start, the market has faced concerns over whether growers could serve the state’s 127,708 medical cannabis patients (as of April) without disrupting recreational supplies.
The seven licensees – operating out of 13 retail storefronts – continue to account for all the state’s adult-use sales.
At the same time, legal wrangling has contributed to concerns over the ability of adult-use growers to meet demand.
In February 2021, a New Jersey appellate court lifted a 2019 order that had prevented the state from issuing additional medical cannabis licenses.
But that 1½-year delay threw a wrench into plans to expand the state’s supply of medical cannabis.
According to DiPisa, many would-be cultivators lost or sold their properties when the court order was in place.
“We were supposed to have all these other medicinal cultivators online that would have been contributing to the supply chain for the medicinal market, which would free up more breathing room for the existing (cultivators) to supply more to the adult-use market,” DiPisa said.
Edmund DeVeaux, president of the New Jersey CannaBusiness Association, told MJBizDaily that options are available to get more cultivators online if need be.
“We are definitely moving towards making sure that there are cultivators that are up and running sooner rather than later,” DeVeaux said.
According to DeVeaux, the New Jersey Cannabis Regulatory Commission (CRC) can get creative with licensing to prevent supply shortages, if necessary, by issuing conditional or annual licenses.
“I would hope that the CRC would take steps if need be to make sure that maybe not just conditional licenses are awarded, but that conventional or annual licenses are awarded, in order to address what could happen,” DeVeaux said.
But Schain contends that many of those conditional licenses were issued to businesses that do not have a realistic possibility of becoming operational.
“The Cannabis Regulatory Commission dawdled in trying to please everyone. Between October 2021 and the present, a shocking number of licenses were issued to grow, process and dispense cannabis,” Schain said.
“Many of these are conditional. The provisional licensees lack financing and industry know-how to put product on shelves.”
As of June, 148 conditional licenses had been issued, according to the latest state data.
Existing cultivators have also expanded to meet demand, including Verano Holdings, an Illinois-based multistate operator that owns three medical marijuana dispensaries and a cultivation facility in New Jersey. (In New Jersey, MMJ dispensaries are called alternative treatment centers, or ATCs.)
“After we acquired our 120,000 square foot New Jersey cultivation and processing facility several years ago, we immediately began construction to turn the formerly vacant retail superstore into a state-of-the-art operation that has enabled Verano to expand capacity, streamline operations, and increase our output in anticipation of the initiation of adult-use sales in the state,” Aaron Miles, Verano’s chief investment officer, told MJBizDaily via email.
Property problems
On top of the limited number of operational growers, municipalities in New Jersey can choose to opt out of allowing cultivation sites within their borders, making it difficult to secure a grow property.
In April, MJBizDaily reported that roughly 70% of municipalities initially opted out of recreational marijuana sales and those that are participating will decide where and how many local licenses to award.
Existing medicinal cultivators can convert their businesses to sell for the adult-use market as well, but such a move requires going through additional red tape.
“They have to go through an approval process with the municipality and make sure the municipality is OK with them selling adult-use (products) as well,” DiPisa said.
“That has delayed a number of the ATCs from converting to the adult-use market.”
Source: https://mjbizdaily.com/new-jersey-recreational-marijuana-retailers-fear-supply-shortages/
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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