Business
The Marijuana Industry is Dead
Prince said the internet was dead in 2010, the marijauana industry is dead in 2022.
The Marijuana Industry is Dead, and Not for the Reasons You Think
You may remember in July of 2010 when Prince declared the “internet is dead”, and the world ridiculed him on social media and the internet. Fast forward to today, and no, Prince was not saying the internet was dead, he was looking at the beginning of apps and smartphones and realized everyone was going to be using apps as their medium of interaction with information on the internet, not necessarily a web browser.
The marijuana industry, still in its nascent stages without even full Federal legalization, is dead. If you read the headlines and follow the industry, you may be guessing what is coming next, since you hear it all the time. Let’s just go over the standard thoughts you are having right now:
- 280E tax codes make almost 50% of cannabis businesses not profitable
- Industry saturation between the legal and illicit market to where wholesale and retail prices are dropping like a stone, forcing small brands and businesses to close shop.
- The “race to the bottom” theory that cannabis is a commodity, like kale, broccoli, and tomatoes, and commodity prices leave little room for high end brands and services
- Federal legalization will lead to massive lowering of the moats to enter a state market, shipping cannabis legally through the mail and UPS, hence the “Amazon’s of Weed” will spring up online.
- With full legalization, low-cost providers of cannabis like Colombia, Brazil, Mexico, whose’ climate, electrical costs, water costs, and labor costs will demolish more expensive grow countries like the US and Canada.
- All consumer surveys to date say consumers are only concerned with 3 factors in a cannabis buying decision, price, effect, and distance or time to get to said cannabis product. Branding, packaging, colors, celebrity endorsement all don’t even rank with consumers at this stage of cannabis legalization.
Those points would all be correct and points we have brought up in numerous articles on Cannabis.net over the past 7 years. You would be correct to be very concerned about all the above-mentioned points, but you missed the most obvious one that is already happening right in front of you, and to that point, we at Cannabis.net, dropped the ball.
If you have ever seen the Brad Pitt zombie thriller, World War Z, you know what the 13th man theory is. We have brought it up in a few articles and it goes something like this, if 12 people all agree on a decision or outcome, it is the 13th man’s job to object, no matter how foolish or stupid his point is, and investigate it. In the movie, it was one person’s job to investigate the early report of zombies taking over parts of the world and pretend it was 100% true, so what should we do if this crazy story is true?
In the true sense of digging into the cannabis industry, we didn’t hold that theory true when the 2018 Farm Bill that legalized hemp was signed into law by then-President Trump. Hemp, and all the cannabinoids as rationed in the plant were made federally legal, is was just that the cannabinoid THC had to be less than 0.3% in the plant in order to be consider legal hemp. Not enough THC to get anyone high, or for anyone to want to smoke it, right?
Then, a chemist decided to get out the Bunsen burner and see if he could start mixing the legal ingredients of hemp to create something like “the real deal THC”, out of the legal elements of the hemp plant.
The birth of Delta-8 THC then arrived. Lab-derived Delta-8 THC when first released was “getting high, lite”. I would call it the Diet Coke to Coke, but after looking up that Diet Coke is the #2 selling soda behind Coke, it would be more like Delta-8 was the Diet Pepsi to Coke. A soda, sweet, carbonated, tasted kind of like Coke, but not really.
At that point, the 13th man, Cannabis.net, moved on. We tested around 7 to 10 Delta-8 THC products as vendors sent us samples and wanted us to do reviews. Most didn’t do much, we got vape pens, gummies, tinctures, and even candies. The best product we got made you 75% high like real THC would do, you were floating, and feeling something, but not even close to the real thing, Coke.
We then moved on. Delta-8 THC from hemp was a stich in time, a product that was sort-of-kind-of legal and got you “almost, kind of, high”. It would only exist for a short time before full marijuana legalization, since once that happened, who would ever buy Diet Pepsi when you could get Coke everywhere, and for cheap. It felt like a few opportunistic, get-rich-quick guys, making a quick push on a niche product that was sure to disappear as “real THC” legalization continued state-by state, were running a quick scam.
Boom! We just got eaten by zombies.
What we failed to ask ourselves in true 13th man fashion was, what if the hemp guys threw enough money and lab PHDs at the problem and actually did it, they actually got the ingredients of the “hemp hot dog” right in the lab? What if they actually got all the legal parts of the hemp plant from the Farm Bill in 2018 to taste, feel, and have the same effect as the “real deal THC”?
It would be amazing; it would solve legalization!
What if you could get as high off of hemp as you could have on full THC marijuana, then the THC version of marijuana, which is still federally illetgal, would become obsolete over time. You could then ship Delta-8 legally all around the country, teaching a generation of people what getting high on cannabis was all about and by the time the marijuana plant was legalized, no one would really care.
Why?
Delta-8 is from hemp, so it is cheaper to source, cheaper to manufacture, and in the end, it would be cheaper for consumers. Hemp is legal, hemp can grow anywhere, hemp can be shipped. And to top it off, the a federal court panet just confirmed that basically, Delta-8 is legal as all the parts contained in the Delta-8 THC version are from a plant that was legalized in the 2018 Farm Bill.
If Delta-8 THC from hemp could create the exact same high, or even better, than the federally illegal marijuana plant, then you would have a game changer that could wipe out billions of dollars invested in the legal cannabis market. Consumers could order online, product could be shipped, lower production costs would lead to a “new race to the bottom” only this time, we are talking fully legal hemp.
We gave up on Delta-8 THC from hemp too early, we never asked what would happen if they threw $500 million and 50 double-PHD chemists at the problem and locked them in a lab to figure it out.
It is the one obviously thing the industry overlooked, and it was right under their noses. If Delta-8 and Delta-9 THC were indiscernible, you literally could not tell the difference, you now had legal “weed” and it could ship and sell across all 50 states with no fear of prosecution or punishment.
Can’t be done, no way?
We thought the same.
Then we were invited to a private, NDA only tasting, which we declined several times, and only agreed as a favor to a business associate. Delta-8 hemp souped up by serious chemist, PHDs, and lab nerds.
As soon as we tried this new product, we knew, “OMG, s#it” the hemp guys did it.
We never saw it coming, the report of zombies in North Korea had to be farce.
The marijuana industry, existing on an archaic moat based on THC being a schedule 1 drug on the CSA, is about to get rocked.
If in a blind taste and “experience” test, what if 100 out of 100 people could not tell the difference between Delta-8 THC from hemp and Delta-9 THC in the illegal marijuana plant?
Drinks, edibles, tinctures could all be indistinguishable between the Delta THCs. The only area where the currently illegal plant would rule would be straight up smokeable flower. Since Delta-8 is made in a lab from “hemp parts”, there is no comparable smoking material that would mimic cannabis THC flower. Once you made hemp flower over 1% in some areas, considered hot hemp, the flower would then be considered illegal.
While flower is still a very popular choice for cannabis consumers, how many people like to inhale and smoke, anything, period? Smoking is outdated, edible sales and vaping are gaining traction as they are cheaper, more discreet, and deliver better results. Will smoking weed ever disappear, of course not, but how often do you see people smoking cigars these days?
Oh, snap.
The marijuana industry is dead.
The hemp guys figured it out first.
Stay tuned for Part 2.
Source: https://cannabis.net/blog/opinion/the-marijuana-industry-is-dead
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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