New policies provide clarity to investors and Canadian businesses
OTTAWA, ON, March 1, 2024 /CNW/ – Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, and the Honourable Pascale St-Onge, Minister of Canadian Heritage, made the following statement to provide additional direction on the application of the Investment Canada Act in the interactive digital media sector:
“Interactive digital media, like video games and virtual reality devices, are a part of many Canadians’ lives. Interactive digital media are one of the largest forms of entertainment, and they also have important applications in learning and education. These technologies are at the heart of a thriving domestic industry that has gained international recognition and attracted foreign investment.
“While Canada continues to welcome foreign direct investments that support the growth of the sector, the Government of Canada recognizes that hostile state-sponsored or state-influenced actors may try to leverage foreign investments in the interactive digital media sector to spread disinformation and manipulate information. The government also recognizes the importance of ensuring the presence of distinct Canadian-owned and Canadian-created intellectual property that allows for the creation of Canadian stories and cultural products.
“The Government of Canada is determined to take action when investments could threaten national security and would not be in Canada’s best interest. To this end, the government is providing additional direction on the application of the Investment Canada Act for investments involving interactive digital media.
“All foreign investments are subject to national security review. Starting today, 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, will be subject to enhanced scrutiny. Net benefit reviews for foreign investments in the cultural interactive digital media sector, particularly in businesses that create their own original intellectual property, may require stricter undertakings for a longer period of time, particularly with respect to creative independence, corporate governance and transparency.
“The Government of Canada is determined to work with Canadian businesses, provinces, territories and municipalities to attract foreign direct investments from partners that advance Canada’s long-term economic competitiveness and are consistent with our national security interests. We will continue to encourage and work with Canadian businesses that require investment capital, by helping to identify and find partnerships that will be in the best interest of Canada’s businesses, workers and economy.”
Associated links
Policy Statement on Foreign Investment Review in the Interactive Digital Media SectorPolicy Statement on net benefit review of foreign investments in cultural businesses in the Interactive Digital Media sector under the Investment Canada Act
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