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Virginia’s adult-use cannabis market stalled indefinitely

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Virginia’s recreational marijuana industry is on indefinite hold.

Less than two years after the state became the first in the South to legalize adult-use marijuana for adults 21 and older, the projected start date for legal sales of Jan. 1, 2024, has been effectively scrapped.

It’s unclear when – or if – recreational MJ sales will begin.

The issue: The legalization bill that the then-Democratic-controlled General Assembly sent to former Gov. Ralph Northam two years ago was a half-measure. Northam signed the bill into law in April 2021,

The new law allowed Virginians to possess cannabis and cultivate up to four plants. It also called for recreational sales to begin no later than Jan. 1, 2024.

But the law also required the General Assembly to later reenact a number of provisions of the 2021 legislation, including those that detail a regulatory and market structure such as licensing.

Prospects for passage of those measures dimmed after a November 2021 state election: Republicans regained control of the governor’s office plus the House of Delegates, the Legislature’s lower chamber.

And with what observers say is encouragement from GOP Gov. Glenn Youngkin, the legislation needed to set up an adult-use market was on track at the weekend to fail during the General Assembly’s short, odd-year legislative session – following a similar failure in 2022.

On Jan. 31, a Republican-controlled subcommittee in the House of Delegates killed a pair of Republican-sponsored cannabis regulatory bills, which would have set up a licensing scheme in time for sales to begin sometime in 2024.

A similar bill proposed in the Democratic-controlled Senate by state Sen. Adam Ebbin, a Democrat, died in the same committee earlier this month.

Multiple sources cited pressure from Youngkin to defeat any adult-use cannabis bill as a major factor in the defeats.

At the same time, Republicans pushed a proposal to slash nearly 70% from the budget of the state’s marijuana regulatory agency, the Cannabis Control Authority.

‘No path’ forward

Virginia’s part-time General Assembly meets in regular session for only 30 days in odd-numbered years, meaning there’s no time left in the state’s legislative calendar to introduce an alternative. 

Lawmakers were scheduled to adjourn on Saturday, Feb. 25.

Greg Habeeb, a former state Republican lawmaker who now lobbies for the Virginia Cannabis Association – an industry trade group – said last week that he held little hope for a 2024 sales launch, noting the General Assembly was scheduled to adjourn Saturday.

“I see no path,” Habeeb said in an interview with MJBizDaily.

With adult-use cannabis regulation dead for the year, the major multistate operators that hold some of Virginia’s existing medical cannabis licenses – as well as possible new market entrants – are stuck in a holding pattern.

“Given the current legal and regulatory ambiguity, Columbia Care does not anticipate adult-use sales beginning on Jan. 1, 2024,” Ngiste Abebe, Columbia Care’s vice president of public policy, told MJBizDaily.

The New York-based multistate operator is one of four companies with medical marijuana business licenses in Virginia, where it currently operates eight dispensaries.

Crisis in a vacuum

In the absence of legal adult-use retail, illicit-market alternatives have appeared across the state, including illegal storefronts and pop-ups.

Add that to the proliferation of untested products containing hemp-derived delta-8 THC, and what’s left is a status quo that Republicans and Democrats in Virginia alike have called a “public health crisis.”

Legally purchased delta-8 THC gummies are what led to the death of a 4-year-old boy last year, according to local prosecutors trying the boy’s mother on murder charges.

“We are in a public health crisis,” Republican Delegate Keith Hodges, sponsor of the failed bill that would have directed the Virginia Cannabis Control Authority to craft adult-use cannabis regulations, said during the Jan. 31 sub-committee hearing in Richmond.

Hodges did not respond to a request for comment from MJBizDaily but he said during the hearing that the current situation in Virginia is a paradox that is “propping up organized crime.”

“You can legally possess marijuana in the Commonwealth of Virginia, but you can’t legally purchase it,” he said. “If we do nothing, we have a problem on our hands. We need to protect the citizens of Virginia from the illicit market.”

A few minutes later, the subcommittee voted to kill Hodges’ bill.

Where the buck stopped

Lobbyists and industry observers said that lawmakers, like those overseeing the Republican-controlled subcommittee where regulatory bills died over the past few weeks, received clear direction from Youngkin, a possible contender for the 2024 Republican presidential nomination, not to advance any adult-use cannabis legislation in Virginia this year.

“Whether explicitly or implicitly, the words or signal was: This was not where the governor wanted the Assembly spending its time,” Habeeb said. “The governor wants nothing to do with it.”

Instead, Youngkin is pushing for a bill to tightly regulate hemp-derived cannabinoids.

As of Friday, the day before adjournment, both houses of the General Assembly were hammering out a compromise bill.

But whatever form hemp regulations take, they are unlikely to address the burgeoning illicit market, critics say, including the rampant “pop-up” markets selling cannabis.

“It’s pretty simple,” said Trent Woloveck, chief strategy director at Florida-based multistate operator Jushi Holdings, which operates five dispensaries in Virginia. “The governor, with his no vote, has voted yes to license cartels and organized crime in the Commonwealth of Virginia.”

The governor’s office did not directly respond to that allegation.

In an e-mail, Youngkin spokesperson Macaulay Porter directed MJBizDaily to a Jan. 25 comment the governor gave to reporters.

“Let me be clear, the bill that I am tracking and looking for is a bill that deals with hemp and delta-8 and the regulations and consumer safety around those products,” Youngkin said.

“Right now, we have products that are being mislabeled, mis-sold and targeted toward children. That is the bill that I am watching to make sure that comes out, because that’s the bill I want to sign.”

Porter did not respond to further questions.

Now what?

Habeeb, the former Republican lawmaker and current industry lobbyist, said Republicans were effectively asked to solve a problem not of their own making, as it was Northam and a Democratic-controlled General Assembly that legalized cannabis without simultaneously passing ironclad regulations for an adult-use market.

“They (Democrats) just assumed they’d win a majority in the next election and fix the bill the next year,” he said.

“We all now know that did not happen. So now you’re in a situation where Republicans – almost all of whom voted against legalization in the first place, and all of whom voted against Democrats’ idea for setting up an adult-use marketplace with social equity provisions and all of those things – are being told to fix a problem someone else created.”

At the same time, it was Republicans – including Hodges as well as Delegate Michael Webert – who carried the regulatory bills that fellow GOP members tabled and who are voicing the same concerns as cannabis advocates and industry lobbyists.

“Our problems are going to continue until we start regulating and taxing the market we have now,” Webert said during the Jan. 31 hearing.

Going forward, absent another political shakeup in Richmond, it’s unclear when Virginia’s marketplace can expect to begin.

“The most impactful change to the outlook for the next year is the General Assembly elections this November,” Columbia Care’s Abebe said. “With every delegate and senator seat up for election, voters have a chance to pick pro-cannabis legislators who will finish the job of legalizing cannabis in the commonwealth.”

Gov. Youngkin’s four-year term, meanwhile, doesn’t end until January 2026.

Source: https://mjbizdaily.com/virginias-recreational-marijuana-market-stalled-indefinitely/

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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