Canada unveiled plans to strengthen regulations concerning foreign investments in the domestic video game sector, particularly with regards to potential national security threats posed by state-sponsored actors.
(Photo : Olya Adamovich from Pixabay)
A new study found that video games have emerged as a platform that foreign actors and extremist groups are utilizing for various purposes.
Safeguarding Video Game, VR Sectors
Canada is taking a proactive approach to safeguard its video game and virtual reality (VR) sectors by enhancing oversight of foreign investments.
Bloomberg reported that this move involves tightening regulations outlined in the Investment Canada Act to ensure the protection of national security interests and Canadian intellectual property rights.
The decision stems from growing concerns about the potential exploitation of investments in interactive digital media by foreign entities, particularly those with state sponsorship or influence.
There is a fear that such actors may seek to spread disinformation and manipulate public opinion within Canada.
Science and Industry Minister Francois-Philippe Champagne and Canadian Heritage Minister Pascale St-Onge jointly announced these measures, highlighting the government's commitment to preserving the integrity of Canada's digital media landscape.
Investment Canada Act
Referring to the Investment Canada Act, which grants the government jurisdiction over foreign investments, the stricter approach pertains to transactions involving interactive digital media.
This encompasses various forms of digital content, such as video games, augmented and virtual reality, and other platforms with numerous engaged users.
The government highlighted various national security considerations, including the scale of a product's user base, the presence of in-game chat records, purchase transactions, and access to microphones or cameras, as well as the connections between potential investors and foreign governments.
Acknowledging the potential threat posed by hostile state-sponsored or influenced entities, who may exploit foreign investments in the interactive digital media realm to disseminate disinformation or manipulate information, this policy outlines the review process for such investments under the Act.
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Canada boasts a flourishing interactive digital media sector, drawing substantial foreign investment. Given the pervasive influence of interactive digital media in daily life, there's an elevated risk of information manipulation.
This encompasses various tactics, including the selective omission of facts, the artificial amplification of narratives, the manipulation of audio/visual content, trolling, and attempts to enforce censorship or induce self-censorship.
In earlier instances, Canada has directed Chinese investors to disinvest in lithium exploration ventures, and it has barred Huawei Technologies Co., a Chinese tech giant, from participating in its 5G wireless infrastructure.
Out of the 32 transactions, Canada mandated the divestment of three deals supported by China, all within the critical-minerals sphere, while investors from China withdrew from seven proposed agreements.
Sensor Tower, a market intelligence firm, reported that nearly one-third of the top-grossing mobile games globally, excluding China, were crafted by Chinese companies.
As per data from the Entertainment Software Association of Canada, the video game sector provides employment to 32,000 individuals on a full-time basis and contributes over 3 billion Canadian dollars in annual sales, equivalent to $2.2 billion.
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