Canada has announced the dissolution of TikTok's Canadian business following a national security review of the Chinese company ByteDance Ltd., which owns the popular social media app. The decision was made to address risks associated with ByteDance's establishment of TikTok Technology Canada Inc.
Industry Minister François-Philippe Champagne clarified that while the Canadian government is ordering the dissolution of TikTok's Canadian business, it will not block access to the app. Canadians will still be able to use the TikTok application and create content as they choose.
Champagne emphasized the importance of Canadians adopting good cybersecurity practices to protect their personal information in light of these developments.
The dissolution order was issued in accordance with the Investment Canada Act, which allows for the review of foreign investments that may pose a threat to Canada's national security.
A spokesperson for TikTok expressed disappointment over the decision, noting that the shutdown of its Canadian offices will result in the loss of hundreds of local jobs. The spokesperson stated that TikTok will challenge the order in court and reassured users that the platform will remain available for creators and businesses.
TikTok's Chinese ownership has raised concerns globally, with fears that Beijing could exploit the app to collect data on Western users or promote pro-China narratives and misinformation. ByteDance, the parent company of TikTok, relocated its headquarters to Singapore in 2020.
The move by Canada comes amidst increasing scrutiny of TikTok's security and data privacy practices in Europe and the United States. The situation reflects broader tensions between China and Western countries over technology and data security.
Previously, Canada had banned TikTok from all government-issued mobile devices, aligning with the growing unease among Western officials regarding the video-sharing app.
