Regulations limiting or authorizing vertical integration are an important feature of any regulated cannabis marketplace.
In California, the Blue Ribbon Commission “and many of the individuals it consulted had significant reservations about the other end of the continuum, namely a market dominated by large corporations that could exert increasing influence on the commercial and political process.”
The Commission determined that “it is appropriate and probably wise for the state of California to adopt a path that limits the size and power—both economic and political—of any one entity in the marijuana industry.”
Further, the report went on to say that “In addition to limiting the scale of operations, it may be appropriate for the state to set limits on vertical integration.”