TikTok’s Canadian business to dissolve, app will remain accessible
The Canadian government is taking a major step against TikTok’s operations in its country without banning the app itself.
As the result of a multi-step national security review process, the government of Canada has ordered the wind up of business conducted in Canada by TikTok’s TikTok Technology Canada, Inc. subsidiary.
In an official statement, François-Philippe Champagne, minister of innovation, science and industry of Canada, said the Canadian government is taking this action to address “specific national security risks” related to the operations of China-based TikTok parent ByteDance Ltd. via TikTok Technology Canada Inc.
"The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners," Champagne said in the statement.
The Canadian government made this decision in accordance with the Investment Canada Act, which allows it to review foreign investments that may be considered harmful to Canada’s national security.
However, Canadian consumers will still have access to the TikTok app and be able to create content using it.
"It is important for Canadians to adopt good cyber security practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors," said Champagne. "While Canada continues to welcome foreign direct investment, the government will act decisively when investments threaten our national security."
TikTok attracts U.S. government scrutiny
TikTok has long been the focus of a variety of legal actions and accusations from federal and state U.S. lawmakers, going back to the first Trump administration. In 2020, Trump and members of his cabinet publicly called for TikTok to divest its U.S. business or face a possible ban.
The Biden administration doubled down on this push, culminating in April 2024 when President Biden signed a law with bipartisan support requiring TikTok’s Chinese owner ByteDance to divest its U.S. TikTok operation by the end of January 2025, or else U.S. app stores and Internet hosting services will not be allowed to support TikTok or any other ByteDance apps.
[READ MORE: Biden signs potential U.S. TikTok ban into law]
The law, which TikTok is currently appealing on constitutional grounds, was passed in response to longstanding concerns over possible ties between ByteDance and the Chinese Communist Party and possible risks to U.S. user privacy (ByteDance and TikTok have publicly denied the validity of these concerns).
TikTok is also facing recent coordinated legal actions from 14 attorneys general alleging the video-focused social platform is harming the mental health of children. It remains widely used in the U.S. and was recently ranked the fourth-most-popular social media platform among American consumers in a survey from Sprout Social, with an overall usage rate of 55%.
