Canada announced Wednesday it will not block access to popular video-sharing app TikTok, but ordered the dissolution of its Canadian company following a national security review of the Chinese company behind it.
Industry Minister François-Philippe Champagne said it is intended to address risks associated with the creation of TikTok Technology Canada Inc. by ByteDance Ltd.
“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,” said Champagne.
Champagne said it is important for Canadians to practice good cybersecurity practices, including protecting their personal information.
He said the dissolution order was issued in accordance with the Investment Canada Act, which allows for the assessment of foreign investments that could harm Canada’s national security. He said the decision was based on information and evidence gathered during the course of the review and on advice from Canada’s security and intelligence community and other government partners.
A TikTok spokesperson said in a statement that the closure of the Canadian offices will mean the loss of hundreds of local jobs.
“We will challenge this order in court,” the spokesperson said. “The TikTok platform remains available for creators to find an audience, explore new interests and for businesses to thrive.”
TikTok is wildly popular among young people, but its Chinese ownership has raised fears that Beijing could use it to collect data on Western users or spread pro-China narratives and disinformation. TikTok is owned by ByteDance, a Chinese company that moved its headquarters to Singapore in 2020.
TikTok is facing increased scrutiny from Europe and America over security and data privacy. It comes as China and the West are locked in a broader battle over technology ranging from spy balloons to computer chips.
Canada previously banned TikTok from all government-issued mobile devices. TikTok has two offices in Canada, one in Toronto and one in Vancouver.
Michael Geist, Canada research chair in internet and e-commerce law at the University of Ottawa, said in a blog post that “banning the company instead of the app could make things even worse because the risks involved The app will remain connected, but the ability to hold the company accountable will be weakened.”
Canada’s move comes a day after the election of Donald Trump in the United States. In June, Trump joined TikTok, a platform he once tried to ban while in the White House. It has about 170 million users in the US
Trump attempted to ban TikTok through an executive order stating that “the distribution in the United States of mobile applications developed and owned by Chinese companies” posed a threat to national security. The courts blocked the action after TikTok filed a lawsuit.
Both the US FBI and the Federal Communications Commission have warned that ByteDance could share user data such as browsing history, location and biometric identifiers with the Chinese government. TikTok said it has never done that and wouldn’t do it if asked.
Trump said earlier this year that he still believed TikTok posed a national security risk but was against banning it.
U.S. President Joe Biden signed legislation in April that would force ByteDance to sell the app to a U.S. company within a year or face a national ban. It’s not clear whether that law would survive a legal challenge from TikTok or whether ByteDance would agree to the sale.
