Ottawa Toughens Policies on Reviewing Foreign Investments in Interactive Digital Media Sector

The federal government has introduced new policies aimed at better protecting Canada’s interactive digital media industry from foreign investments that could pose threats to national security. “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,” Innovation Minister Francois-Philippe Champagne said in a March 1 statement. The statement provides additional guidance on how the Investment Canada Act is to apply in the sector, which includes a wide variety of businesses involved in digital entertainment and educational applications such as video games and extended reality....