Canada’s Innovation Minister, Francois-Philippe Champagne, announced on Friday a new policy. This policy will limit foreign investment in the interactive digital media sector to protect national security. State-sponsored actors threatening Canada’s security by getting involved in this sector worry the government. Interactive digital media includes popular and influential items like video games and virtual reality devices. Foreign actors can misuse these for interference and spreading false information. Champagne explained that the concern is about hostile actors spreading disinformation and manipulating facts. This is why they are cracking down on foreign investments in this area.
Canada to Crack Down on Foreign Investment in Digital Media Sector
While no specific country was named, Canada has previously accused China and Russia of foreign interference. They both denied it.
Starting now, Ottawa will closely inspect investments by foreign-owned or influenced entities. This applies to investments in the interactive digital media sector. Foreign entities must pass stricter, longer assessments. These assessments will examine the content’s reach and audience, online presence, and how much control the investor might have over the Canadian company.
Furthermore, authorities may require foreign investors to provide stricter undertakings for an extended period of time. This includes commitments towards maintaining creative independence, adhering to corporate governance practices, and promoting transparency within their investments.
Canada’s decision protects its national security. It stops potential threats from abroad. The country watches foreign investment in digital media closely. This keeps Canada free and safe from harm.
As technology connects the world, governments must be careful. Canada is doing this by controlling foreign money in digital media. This keeps Canadians safe today and tomorrow.
https://finance.yahoo.com/news/canada-crack-down-foreign-investment-221323223.html
