Canada Orders TikTok to Wind Down Operations Over National Security Concerns

What to know:

Canada has ordered ByteDance to dissolve TikTok’s business operations in the country, citing unspecified national security risks.
The Canadian government will not ban the app itself, allowing citizens to continue using and creating content on the platform.
TikTok plans to challenge the order in court, arguing it will eliminate hundreds of local jobs in Toronto and Vancouver.

The Canadian government has taken decisive action against TikTok‘s presence in the country through an order issued under the Investment Canada Act. Industry Minister François-Philippe Champagne announced that the decision was based on extensive evidence gathered during a multi-step national security review process, with input from Canada’s security and intelligence community.

The order specifically targets ByteDance Ltd.’s Canadian subsidiary, TikTok Technology Canada Inc., while deliberately avoiding restrictions on Canadian users. This measured approach allows the platform to remain accessible to its Canadian user base, with Minister Champagne emphasizing that choosing a social media platform remains a “personal decision”.

The Canadian government’s decision follows a broader pattern of Western scrutiny over TikTok’s operations. The platform has faced increasing concerns about potential data sharing with the Chinese government, though TikTok has consistently denied such practices. Canada had previously banned the app from government-issued devices in February 2023.

TikTok has strongly opposed the decision, stating that “shutting down TikTok‘s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest”. The company has announced its intention to challenge the order through legal channels while maintaining that the platform will continue to be available for creators and businesses.