Canada announced on Wednesday (November 7) that it would not block Canadians’ access to the popular video-sharing app, but would order the closure of TikTok’s Canadian office after conducting a national security review of the Chinese company behind TikTok.
The Associated Press reported that François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, said this was to address national security risks associated with the establishment of TikTok Technology Canada Inc. by ByteDance, TikTok’s parent company.
“The government does not block Canadians’ ability to access the TikTok app or the content they create. The decision to use a social media app or platform is a personal choice,” Champagne said. Champagne
said it was important for Canadians to adopt good cybersecurity practices, including protecting their personal information.
He said the government’s dissolution order was issued under the Investment Canada Act, which allows for the review of foreign investments that could harm Canada’s national security. He said the decision was based on information and evidence collected during the review process, as well as advice from Canada’s security and intelligence communities and other government partners. The review begins in September 2023.
A TikTok spokesperson said in a statement that the closure of the Canadian branch office will mean the loss of hundreds of local jobs.
“We will challenge this order in court,” the spokesperson said. “The TikTok platform will continue to be available for creators to find audiences, explore new interests and businesses to thrive.”
TikTok is popular among young people, but its wholly owned by a Chinese company has raised concerns that Beijing may use the app to collect data from Western users or push pro-China narratives and false information. TikTok is owned by the Chinese company ByteDance, which moved its headquarters to Singapore in 2020.
TikTok is facing increasing scrutiny from Europe and the United States over security and data privacy. At the same time, China and the West are caught in a broader technological tug-of-war over everything from spy balloons to computer chips.
Canada previously banned the use of TikTok on all government mobile devices. TikTok has two offices in Canada, one in Toronto and one in Vancouver.
Michael Geist, director of Canadian internet and e-commerce law research at the University of Ottawa, said in a blog post that “banning the company rather than the app may actually make the situation worse, as the risks associated with the app will remain, but the ability to hold the company accountable will be weakened.”
Canada’s move to order the dissolution of TikTok’s Canadian operations comes a day after Donald Trump won the U.S. election. In June, Trump set up a campaign account on TikTok. TikTok has about 170 million users in the United States.
Trump tried to ban TikTok with an executive order during his first term. The order said the “spread of mobile applications in the United States developed and owned by Chinese companies” was a threat to national security. After TikTok sued, the court blocked the lawsuit.
Both the FBI and the Federal Communications Commission warned that ByteDance could share user data, such as website browsing history, location and biometric identifiers, with the Chinese government. TikTok said it has never done so and would not do so if asked.
Trump said earlier this year that he still believes TikTok poses a national security risk but opposes banning it.
U.S. President Joe Biden signed legislation passed by Congress in April that requires ByteDance to sell the TikTok app to a U.S. company within a year or face a nationwide ban. It is unclear whether the law will survive a legal challenge filed by TikTok or whether ByteDance will agree to the sale.
The bill was driven in part by concerns about China’s national security law, which forces Chinese companies, organizations, institutions, individuals, etc. to assist authorities in collecting intelligence.