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With cannabis cultivator cap lifted, growers face New Jersey’s challenges

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New Jersey is no longer limiting the number of cannabis cultivation licenses, and entrepreneurs are looking forward to supplying the East Coast marijuana market as production ramps up.

However, up-and-coming growers in New Jersey face significant obstacles, including:

  • A majority of municipalities that have opted out of permitting cannabis businesses.
  • A competitive market for limited, expensive industrial real estate.
  • Challenges raising capital in a tough lending environment.

For cultivators who can overcome those headwinds, an attractive market awaits.

Will Perry, CEO of Oregon cultivator Magic Hour Cannabis, is working to launch production in New Jersey, teaming up with local partner Jersey Shore Ventures Group, which has access to the necessary real estate.

Oregon marijuana prices have crashed, with the median wholesale price hitting $599 per pound in February.

In New Jersey, however, Perry expects premium marijuana could earn at least $4,500 per pound.

“I don’t know anywhere else where there’s such a high population,” he said, “and also factoring in people from New York, also bordering states like Pennsylvania, there’s 30-plus million (people).

“And these are all people that have more expendable income than the average person in Oregon.”

Cultivator cap dropped

New Jersey’s two-year cap that limited cultivation licenses to 37 was included in legislation enacted in 2021, although the restriction didn’t apply to micro-cultivators.

The state’s adult-use cannabis market launched in April 2022 with only seven cultivators supplying 13 adult-use retailers.

Amid industry concerns over limited supply, the New Jersey Cannabis Regulatory Commission (CRC) decided not to renew the cap when it expired in February.

CRC Executive Director Jeff Brown told MJBizDaily that decision was made, in part, “because there’s plenty of room in the market for more cultivation.”

Brown said New Jersey has far fewer than the average number of cultivation licenses found in other states where adult-use marijuana is legal.

“The market has a long way to grow here; all indicators show that we need more cultivation here,” he said.

The CRC reported 415 cultivation license applications as of Feb. 13, according to information posted for the agency’s March public meeting.

As of March 14, New Jersey had 17 operational cultivators and 25 annual licensees “on their way to becoming operational,” according to a CRC spokesperson.

‘Everything just gets better with more competition’

New Jersey CannaBusiness Association President Edmund DeVeaux said the state’s medical marijuana patients already expressed “concerns, if not complaints, about quantity and quality.”

“So now that we have an adult-use industry on top of our medical industry, those concerns, those criticisms continue,” he said.

DeVeaux is hopeful that new cultivation facilities will come online this year, especially with the availability of microbusiness licenses for smaller growers.

“It might be a little bit easier and a quicker time from seed to sale, by using the micro-licensing category,” he said.

Darrin Chandler Jr., co-founder and president of conditionally licensed New Jersey cultivator and manufacturer Premium Genetics, said retailers tend to have the same products from the same small group of operational growers.

“By us getting more cultivators online, we’re going to get a robust market, you’re going to have more competition, you’re going to have a better quality,” he said.

“Everything just gets better with more competition coming to the market.”

Difficult business conditions

Would-be cultivators face several converging business challenges in New Jersey.

Raising capital for marijuana is tough there, just as in other states.

On top of that, New Jersey’s local governments have significant powers, and many municipalities have opted out of hosting cannabis businesses: According to the CRC, 179 municipalities had opted in and 380 had opted out as of March 14.

That complicates the search for cultivation and manufacturing space in New Jersey’s tight industrial real estate market.

Premium Genetics’ Chandler said finding industrial real estate is “almost impossible,” and prices are “astronomical.”

Some property owners don’t want to work with the marijuana industry “simply because of the federal laws, (and) that makes the available real estate even slimmer,” said Brown, the state cannabis chief.

“We are seeing conditional license holders who are having trouble converting to annual licenses for that simple fact.”

Shergoh Alkilani, co-founder and chief operating officer of cultivation annual licensee ElevenEleven Wellness, believes there’s lots of room for new cultivators in New Jersey.

However, he believes that even with a conditional license, a secured property and local approval, some aspiring cultivators will “still have to come up with another $15 million or $20 million … I feel that what’s going to happen is that there’s going to be a flood of licenses issued, and then there’s going to be many that don’t open.”

Lifting the cultivation license cap “is good for the New Jersey cannabis economy,” Alkilani said.

“I think there’s just an incredible amount of demand, consumers are feeling like they’re stuck with somewhat secondary product because all the real top-tier stuff gets sold out so quickly …

“I just hope that the state could really help people get open and be able to survive long term.”

John Ng, president of conditional cultivation licensee Aeterna, also expects that not all of New Jersey’s up-and-coming cultivators will actually be able to turn their conditional licenses into the annual licenses needed to start operations.

“It’s going to be entirely the availability of industrial real estate in friendly towns,” he said.

Aeterna owns its property, but Ng said obtaining local approvals and zoning has been challenging.

“I think that the CRC is doing as best as they can – they can’t magically make real estate appear out of nowhere,” he said.

Avoiding the oversupply trap

It’s not unusual for new adult-use marijuana jurisdictions to face production shortfalls.

But as more cultivators rush to come online, New Jersey could eventually face the dilemma seen in some other, more mature state marijuana markets: Too much cannabis supply puts downward pressure on prices, especially without the release valve of interstate commerce.

For New Jersey, that risk looks far off.

“I’m not saying that going at a deliberate pace doesn’t come with its challenges,” the CannaBusiness Association’s DeVeaux said.

“But the one thing that we haven’t seen is the boom and bust.”

The CRC’s Brown said that “New Jersey is a long way away from having to worry about oversupply.”

Considering the situation in terms of access to capital, New Jersey’s commercial real estate market and municipal opt-outs, he added, “the market’s developing at a much more measured pace here than in some other states.

“But we do see it continuing to expand; in every meeting, our commission is issuing new annual licenses for retail, manufacturing, and cultivation.”

Source: https://mjbizdaily.com/with-cannabis-cultivator-cap-lifted-growers-face-new-jersey-challenges/

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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