Canada announced Wednesday that it will not block access to the popular video-sharing app TikTok but is ordering the dissolution of its Canadian business following a national security review of the Chinese company behind it.
Industry Minister François-Philippe Champagne explained that this decision addresses risks associated with ByteDance Ltd.’s establishment of TikTok Technology Canada Inc. “The government is not blocking Canadians’ access to the TikTok application or their ability to create content. The decision to use a social media application or platform is a personal choice,” Champagne said.
Champagne emphasized the importance of adopting good cybersecurity practices, including protecting personal information. The dissolution order was issued under the Investment Canada Act, which mandates the review of foreign investments that could harm Canada’s national security. This decision was based on information and evidence collected during the review and advice from Canada’s security and intelligence community, along with other government partners.
A TikTok spokesperson stated that the shutdown of its Canadian offices will result in the loss of hundreds of local jobs. “We will challenge this order in court,” the spokesperson noted, adding, “The TikTok platform will remain available for creators to find an audience, explore new interests, and for businesses to thrive.”
TikTok’s Chinese ownership has raised concerns that Beijing could exploit the app to collect data on Western users or promote pro-China narratives and misinformation. Although TikTok is owned by ByteDance, a Chinese company that relocated its headquarters to Singapore in 2020, it remains under intense scrutiny regarding security and data privacy from Europe and America. This development occurs amid a broader technological tug of war between China and the West, affecting everything from spy balloons to computer chips.
Previously, Canada banned TikTok from all government-issued mobile devices. In Canada, TikTok operates two offices, one in Toronto and another in Vancouver.
Michael Geist, Canada research chair in Internet and E-commerce Law at the University of Ottawa, noted in a blog post that “banning the company rather than the app may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened.”
This move from Canada coincides with the recent U.S. election of Donald Trump, who joined TikTok in June after previously attempting to ban it during his presidency. TikTok, which has about 170 million users in the U.S., faced a ban through an executive order from Trump, citing national security threats linked to Chinese-developed mobile applications. However, courts blocked the ban after TikTok filed a lawsuit.
U.S. institutions, including the FBI and the Federal Communications Commission, have cautioned that ByteDance could share user data, such as browsing history, location, and biometric identifiers, with the Chinese government. TikTok has repeatedly stated that it has never shared such data and would not do so if asked.
Despite his opposition to banning the app now, Trump has maintained that TikTok poses a national security risk. Earlier this year, U.S. President Joe Biden signed legislation mandating ByteDance to sell the app to a U.S. company within a year or face a national ban. It remains uncertain whether this law will withstand a legal challenge from TikTok or if ByteDance will agree to sell.
