Canada’s Digital Sovereignty at Risk as Payment Giant Moneris Sold to US Private Equity Firm

The recent sale of Moneris, one of Canada’s largest payment processing companies, to American private equity firm Francisco Partners has sparked concerns about the country’s ability to protect its citizens’ digital data. The deal gives the U.S. access to a vast trove of sensitive information about Canadian consumers, including their purchasing habits and financial transactions.

Moneris handles approximately one-third of all payment transactions in Canada, processing over $5 billion annually through more than 325,000 points of commerce. This significant control over Canadian payment data raises questions about the potential for U.S. government access to this sensitive information. The ongoing trade war between Canada and the United States adds to these concerns.

Canada’s history of relying on U.S. technology and data storage solutions has left it vulnerable to external control. Experts argue that the country’s digital sovereignty is woefully underdeveloped, making it difficult to assert control over its own digital domain.

A Lack of Urgency in Ottawa

Bill C-36, the Protecting Privacy and Consumer Data Act, proposes significant changes to Canada’s private sector privacy framework. However, experts like Sharon Polsky, president of the Privacy and Access Council of Canada, argue that it does not go far enough in protecting Canadians’ data.

“The legislation doesn’t really speak to data being retained in Canada as a matter of national security or as a matter of data sovereignty,” Polsky said. “It’s a bit like trying to dance around the issues.” The bill’s proposed changes, including updating language to establish privacy as a fundamental right and requiring companies to conduct a privacy impact assessment before transferring personal data outside of Canada, are seen by many as incremental at best.

Moneris’s Data: A Prized Asset

The data that Moneris collects is a prized asset for its new owners. This information could be used to inform trade negotiations between the U.S. and Canada, potentially giving the U.S. government significant leverage in future talks. The risk of Canadians’ data being used against them by foreign governments or law enforcement agencies is very real.

Colin Deacon, an Independent Canadian senator, has expressed similar concerns about how the U.S. government could use Moneris’s data. “There are a number of ways in which [U.S. President Donald Trump] has absolute control over services that Canadians rely on every day,” he said.

A Long Way to Go

The sale of Moneris is just one symptom of a larger problem: Canada’s digital sovereignty is lagging behind other developed nations. While the country has made some progress in addressing digital issues, it still lags behind in terms of protecting its citizens’ data and asserting control over its own digital domain.

Canada’s lack of urgency on this issue could have far-reaching consequences for Canadians’ digital rights and interests. The sale of Moneris serves as a stark reminder that the country has much work to do in asserting its digital sovereignty. As Polsky notes, Canada is “behind the eight ball” when it comes to digital sovereignty.

The time for words is over; it’s time for action.