Canada orders shutdown of two tech firms over security concerns

Due to national security concerns, Canada has ordered the dissolution of two technology companies, Bluvec Technologies Inc and Pegauni Technology Inc. According to a statement from the innovation ministry, the companies were directed to cease all operations under the Investment Canada Act. As Innovation Minister Francois-Philippe Champagne stated, the decision followed an extensive review by Canada’s national security and intelligence community.

Minister Champagne emphasised that while Canada remains open to foreign direct investment, it will take decisive action when such investments threaten national security. The statement did not provide specific details about the security concerns or the nature of the investments involved. Bluvec Technologies is identified as a maker of drone detection devices, while Pegauni Technology, which appears to produce wireless security products, could not be reached for comment.

The Investment Canada Act, revised earlier this year, now includes stricter national security reviews for proposed foreign investments. The law applies to foreigners acquiring control of a Canadian business or establishing a new business within the country. Additionally, the enforcement of these regulations underscores Canada’s commitment to safeguarding its national security in the face of potential foreign threats.