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US cannabis companies tread cautiously into turbulent Canadian market

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A growing number of American companies are wading cautiously into Canada’s competitive cannabis industry in search of new revenue streams and, in some cases, relatively cheap assets. 

Executives at a variety of U.S. cannabis companies – from technology and events firms to beverage and edibles businesses – told MJBizDaily that they find Canada’s centrally regulated market appealing. 

And despite Canada’s overproduction of cannabis and falling prices, some U.S. executives see more opportunities north of the border versus core U.S. markets where sales are declining on a year-over-year basis.

That’s especially true in more mature state markets such as Colorado, Nevada and Oregon.

“The U.S. is a high-growth market in (the) aggregate. But if you look at it on a state level – excluding recently legalized states, plus California – market growth is beginning to flatline if not slow significantly,” said Mitchell Osak, president of Toronto-based Quanta Consulting.

“For growth-focused, publicly listed U.S. companies, at a 10,000-foot level, Canada could represent an appealing market based on market size and regulatory clarity.” 

According to New York-based Cantor Fitzgerald, Canada’s recreational cannabis market grew 21% in the second quarter on a year-over-year basis, while the financial services firm estimates U.S. growth will be just 1%.

New growth 

In addition to sales trends, Osak noted that Canadian assets are relatively cheap at the moment, and the lower Canadian dollar makes M&A in Canada more appealing in some cases.

“For U.S. bargain hunters with cash, you could pick up a lot of quality assets from hungry sellers on the cheap,” he said.

That was the route taken by California-based cannabis technology company Blaze Solutions.

In May, Blaze acquired Vancouver-based dispensary point-of-sale software company Greenline for an undisclosed sum.

Chris Violas, CEO of Blaze, said the company was looking for new growth outside of its core markets. 

“There’s growth in the U.S., no doubt, and we’re excited about that. But, at the end of the day, there is a limited (total addressable market). So we asked, ‘Where could we go and be smart and win some market share?’” he told MJBizDaily

“From our point of view, it’s strategically looking at getting more market share without cannibalizing our own technology – and finding a partner who can open up that new market.” 

In a news release announcing the acquisition, Violas said the purchase gives customers the “ability to expand their footprint into the U.S. or Canada using the same software provider.”

“This is essential for increasingly sophisticated cannabis retailers in states near the border,” he added, citing Michigan, New York and Washington state as examples.

Edibles companies eye Canada

So far, most U.S. cannabis businesses expanding into Canada have been ancillary companies that don’t touch the plant – as opposed to cultivators and retailers.

But some U.S. infused product manufacturers are heading north of the border to sign deals with Canadian companies, including licensed producers.

The licensing and partnership deals allow the Canadian companies to produce edibles and other infused products according to manufacturing specifications of the U.S.-based company. 

“Some of the U.S. companies that would want to enter Canada are edibles brands looking for new revenue opportunities and ways to extend their brands,” business advisor Osak said.  

“Edibles are growing a lot in the United States, albeit from a small base. U.S. edibles companies would look to license their formulations and brands to Canadian LPs,” he said, adding that some have already done this successfully. 

One U.S. edibles company eager to expand into Canada is California-based Kiva Confections, which announced a deal in May with Montreal-based license holder Greentone. 

The arrangement will allow Kiva to offer its edibles at retail outlets across Canada.

Ben Schultz, who heads up new market expansion for Kiva, said the company has traditionally expanded into new markets through licensing and partnership deals. 

Schultz said such arrangements are one way of mitigating risk: The company doesn’t have to to shell out big bucks to build its own manufacturing facilities. 

“That’s the expansion look for us. From a cash-flow standpoint, we haven’t had to spend $10 million to set up in Canada, which plenty of people have done, for better or for worse,” he said. 

“We found a great partner who has the facility, licenses and team in place to help us manage and navigate. I wasn’t an expert coming in on the Canadian rules and regulations, so we’ve had to rely heavily (on our Canadian partners) to help us navigate the various nuances of the Canadian market.” 

Kiva wasn’t dissuaded by Canada’s hyper-competitive edibles market or the country’s patchwork of provincial regulations. 

“We have a lot of experience in the U.S. rolling out our product to different states and territories that have totally different rules – way more different market-to-market than Canada,” Schultz said. 

“We’ve got a lot of experience adapting our brands and products to the regulations of each location.” 

Hall of Flowers goes north

Another U.S. company seeking to make inroads in Canada through a partnership is the business-to-business cannabis trade show operator Hall of Flowers. 

Hall of Flowers Canada – set to take place in Toronto in mid-September – offers a retail environment that helps brands and retail buyers do business.

According to a news release, Hall of Flowers Canada intends to bring together at least 200 brands and 1,000 retail leaders.

Dani Diamond, Hall of Flowers founder and CEO, called his company’s expansion into Canada a “calculated risk.”

But it’s not without risk. Lift & Co., the largest cannabis trade show in Canada, went bankrupt last year before some of its assets were scooped up by Virginia-based events company MCI USA

Diamond said the opportunity to bring the Hall of Flowers model to Canada presented itself when Krista Raymer, co-founder of the Vetrina Group, a retail cannabis consulting firm based in Toronto, reached out with the idea of bringing the event up north. 

“Working with us was a way that the Hall of Flowers team was able to mitigate risk with our knowledge and relationships within the Canadian market,” Raymer said. 

“We have the boots on the ground, which might otherwise constrain the Hall of Flowers team during the day-to-day operations. And we’re able to reflect the nuances that are vital to making the show a success up here.”

Minimizing risk via horizontal approach 

Other U.S. companies recognize opportunity in the Canadian market, but they also see it as a way to prove out new cannabis products in one of the few federally-regulated recreational markets in the world. 

“We built our plan to de-risk as much of the unknown as we could,” said Paul Weaver, head of cannabis at Boston Beer Co., a well-known U.S. craft brewer. 

Rather than making a big splash by buying a cannabis producer and bottling plant, Boston Beer signed on strategic partners in Canada to produce nonalcoholic THC-infused teas dubbed TeaPot. 

The company launched its product in Canada via a three-tier, multifaceted supply-chain partnership with Peak Processing Solutions in Windsor, Ontario, and Entourage Health Corp., an Ontario-based grower and distributor.

“This is the new state of the union for the industry – having partners, collaborating and spreading out your capital a little bit. The entire industry is embracing a more horizontal approach.”

Weaver said big risks typically involve significant capital allocation, over-investing in one idea and not having the flexibility to pivot. 

“We focus on what we can control. … That’s what’s going to allow us to act quickly when the dust starts settling in some of these markets,” Weaver said, referring to up-and-coming European markets. 

“Flexibility in Canada allows us to test, learn and build an amazing product around TeaPot.”

Source: https://mjbizdaily.com/us-cannabis-companies-tread-cautiously-into-turbulent-canadian-market/

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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