JAKARTA – Canadian Minister of Innovation François-Philippe Champagne said Friday, March 1 that Canada will crack down on foreign investment in the interactive digital media sector to prevent state-sponsored actors from threatening national security.
“From now on, Ottawa will strengthen oversight of investments “made by entities owned or influenced by foreign countries, particularly countries that engage in activities that could harm Canada’s national security,” he said.
Interactive digital media terminology includes video games and virtual reality devices.
“Actors sponsored or influenced by adversary states may seek to … spread disinformation and manipulate information,” Champagne said in a statement.
Although it did not identify specific countries, Canada has repeatedly accused China and Russia of foreign interference. However, both countries deny these accusations.
“Now, foreign entities wishing to invest in the sector may have to provide stricter guarantees and over a longer period, particularly in terms of creative independence, corporate governance and transparency,” he said.
Factors Ottawa will look for when considering a proposed foreign investment include the reach and audience of the product's content, whether the product has an online element and the degree of control or influence the investor is likely to exercise influence on the Canadian company.
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