Business
What’s next in the City of Angels: Q&A with L.A. marijuana regulator Michelle Garakian
Shortly after Michelle Garakian replaced Cat Packer in March to become the Los Angeles marijuana czar, the city invoked mandatory timelines to process and approve cannabis business applications and licenses.
Unclogging that bottleneck is among Garakian’s top priorities.
In particular, she aims to remove bureaucratic red tape as well as better communicate with and help operators and applicants in one of the world’s largest regulated marijuana markets.
Garakian, a longtime insider at the L.A. Department of Cannabis Regulation (DCR) and former aide to Mayor Eric Garcetti, spoke with MJBizDaily for a wide-ranging discussion on marijuana policy, new department initiatives and the push to transfer thousands of temporary permits into annual licenses.
What are your overarching goals for the DCR moving forward?
To get back to the mission of the department, which is licensing.
We’re really focused on business development and customer service.
That has been a core tenet guiding me, in addition to centering social equity in every single one of those tenets.
What should stakeholders know about the new social equity verification process?
The verification rules have changed.
The council made a concerted decision to narrow the criteria because they wanted to ensure the folks getting into this process were the folks that were really dealing with the impacts of the war on drugs.
You have to have a cannabis conviction or arrest and either live in a disproportionately impacted area or prove (you’re) low income.
If (you’re) low income, we’re not using not using zip codes anymore; we’re using police reporting districts.
This is really narrowing it down to where the most cannabis convictions or cannabis arrests have taken place.
Since this process opened May 26, we’ve received 300 to 350 applications.
Once the verification window closes July 25, the department has at least 90 days to process those requests.
What’s behind the push to allow social equity licensees to relocate? The council has yet to take this issue up, but it’s gaining traction.
We really need to be able to allow them to move outside of their community plan.
I think the council is warming up to it. We’re going to continue to advocate for that.
It’s going to be a game changer and a life saver for a lot of people.
Have you started ramping up staff to meet new application deadlines?
We were allocated 21 new positions. Our department is doing interviews multiple times a week.
I was sitting on a panel of interviews, and we interviewed almost 17 people on two different days.
We are trying to onboard people as much as possible.
There was a hiring freeze for two years, and when that was lifted, all these big departments started hiring and everybody has vacancies. So it’s mega-competitive.
(There will be) a lot of positions in the licensing sector. That’s where we need the capacity.
A few positions in the social equity group. A few positions for our communications and policy staff.
And we’re bringing in more high-level management, so a lot of the policy work isn’t so concentrated at executive level.
What other new initiatives are on the way from DCR?
We’re trying to manage our email accounts better. We instituted a new process so people are getting a 48- to 72-hour turnaround on their emails.
We’ve implemented a system where phone calls are being picked up faster and we’re tracking how many calls we’re getting.
Trying to focus our department to run more like a business.
I’m trying to track these benchmarks because I want to see if things are improving quarter to quarter.
When I first (was promoted) in March, I asked my assistant to set up 25 different stakeholder meetings and just talk with a variety of stakeholders: ‘What are your challenges? What are your issues? Send me three top things you’d like to see get done.’
Some of those things we’ve actually done. I’m listening, and I’m trying to be as receptive as possible.
What will you do about the underground market and bringing unlicensed operators into the regulated market?
There’s a lot of urgency around this issue.
DCR has no authority under local law to enforce against unlicensed activity. … Nor do we have any authority to directly influence how other city agencies prioritize their resources to address this issue.
Folks are using the complaint portal in the department to make complaints about illegal businesses and legal businesses.
If it’s an illegal business, it will go to (the police). They can go in … and disconnect the water and power.
Then Department of Building and Safety comes in with a civil enforcement activity to padlock and board the premises.
But as we know, this is a “Whac-a-Mole” game.
We even asked for $10 million (from the city council) to create a fund this year that different agencies would draw from for various activities related to enforcement.
That wasn’t a request that was honored. You’re definitely going to see more robust enforcement activity.
What’s your plan to assist social equity applicants and license holders?
We’ve developed an online learning-management system that offers over 90 hours of educational cannabis business content.
In April, we were doing two business, licensing and compliance webinars a week on topics ranging from inventory to security to hiring to how to fill out insurance forms.
We’re also developing a capital case workers pilot for 20 people.
The program is designed for applicants who have passed through the pre-application review stage.
We’re pairing them with coaching consultants who will help assist them with financial literacy, credit repair, access to capital and assistance locating compliant properties.
We just got another $5.7 million from the state, and that’s going toward a rental-assistance program.
We had a really successful career fair in March. We now have a board up so people can post jobs, and job-seekers can find jobs.
This interview has been edited for length and clarity.
Source: https://mjbizdaily.com/qa-with-l-a-marijuana-regulator-michelle-garakian/
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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