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Jurist Canada announces new measures for reviewing foreign investments in digital media sector

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Dadparvar

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Nov 11, 2016
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Canada’s Minister of Innovation, Science and Industry François-Philippe Champagne and Minister of Canadian Heritage Pascale St-Onge announced in a statement Friday additional measures aimed at strengthening guidelines on foreign investments in the interactive digital media sector. The two ministers hope to clarify and improve the application of the Investment Canada Act, which governs foreign investments.

Recognizing the risks “hostile state-sponsored or state-influenced actors” may cause to Canada’s national security, such as spreading misinformation, the two ministers said that, “Canada is determined to take action when investments could threaten national security and would not be in Canada’s best interest.” Therefore, the new measures will provide further guidance on how the Investment Canada act impacts interactive digital media, which includes video games and virtual reality.

The main change is that more scrutiny will applied to “investments in the interactive digital media sector by entities owned or influenced by foreign states, particularly states that engage in activities that may pose a risk to Canada’s national security.” Champagne and St-Onge said that all foreign investments go through a national security review, but they will heighten the standards for investments in this sector.

The Investment Canada Act applies to non-Canadians who either own a business or would like to create a business in Canada, and aims to promote foreign investments that improve the Canadian economy. The Act’s text tasks the government with “ensur[ing] that the notification and review of investments are carried out in accordance” with the Act’s emphasis on both economic prosperity and national security.

The post Canada announces new measures for reviewing foreign investments in digital media sector appeared first on JURIST - News.

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