We mentioned potential action to be taken by a European trade group against Canada for unfair trade practices, and now the UK Ministry of Canadian Ministry of Culture, Media and Sport has launched a formal investigation. The British government is afraid that Canadian " state aid offered to computer games companies ... may not be compatible with World Trade Organization principles." With a bevy of tax benefits (with some allowing companies to write off as much as 45% of labor costs), Canada has been luring big development studios away from Europe:

" The Canadians have driven a tank over the French Citroen and have now parked on our lawn," Paul Jackson, head of the industry organization representing British games studios, complained to the Financial Times earlier this week. " It is becoming very challenging to keep core development studios here."