UK challenges Canada, claims tax incentives as grounds for unfair trade

UK challenges Canada, claims tax incentives as grounds for unfair trade - Image 1It’s not too long ago that video game firms in the UK voiced out how their own government “strangles” one of its own thriving industries, and they noted how the Canadian government could be so wise to encourage their game industry by pushing out helpful programs and incentives. Incidentally, the UK has noticed that too – but only after losing many studios to the pro-gaming nation. More industry news at the full story.

UK challenges Canada, claims tax incentives as grounds for unfair trade - Image 1

An industry organization representing UK game studios has noted that Canadian aid granted to its thriving game industry is against fair trade practices, prompting the UK Ministry of Culture, Media and Sport to institute a formal probe into the Canadian government’s trade practices. The investigation will channel through the European Union and verify these claims.

Moreover, it appears that the investigation will compare policies put forth by the World Trade Organization with that of aid programs that several federal organizations in Canada offer to budding game development firms. This practice has brought many potential UK-based firms to look to Canada for a more promising start.

And though the Canadian government does grant multiple incentives to constituents of the game industry, the interactive entertainment segment continues to thrive – and exponentially in most cases. In contrast, game development firms still based in the UK have complained that their own government is not only indifferent to the local game industry, but the government also “strangles” them. More updates in the worldwide game industry as we get them.

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