In a statement on Friday, Canada's Minister of Innovation, Science and Industry François-Philippe Champagne and Pascal St. Saint-Onge, Minister of Canadian Heritage, announced additional measures aimed at strengthening guidelines for foreign investment in the interactive digital media sector. The Ministers look forward to clarifying and improving the application of the Investment Canada Act, which regulates foreign investment.
Recognizing the risks that “hostile state-led or state-influenced actors” can pose to Canada's national security, including the spread of misinformation, the Ministers stated that “Canada recognizes the risks that investments may pose to national security.” “We are determined to take action if such investments are not made, potentially jeopardizing security.” It's in Canada's best interest. ” The new measures will therefore provide further guidance on how the Investment Canada Act impacts interactive digital media, including video games and virtual reality.
The main changes include stricter restrictions on “investments in the interactive digital media sector by foreign countries, particularly state-owned or -influenced entities that engage in activities that may pose a risk to Canada's national security.” Surveillance will be applied. Champagne and Saint-Onge said all foreign investments will be subject to national security screening, but standards for investment in this sector will be raised.
The Investment Canada Act applies to non-Canadians who own or want to start a business in Canada and is designed to encourage foreign investment that improves Canada's economy. The provisions of this law require the government to[ing] Investment notification and review will be conducted in accordance with legislation that focuses on both economic prosperity and national security.
