Canada Orders Shutdown Of TikTok’s Canadian Business

ByteDance and TikTok’s hold on the North American market takes another blow this week, after a notable intervention by the Canadian government.

The Government of Canada announced on Wednesday that it has ordered the wind of TikTok Technology Canada Inc. following a national security review under the Investment Canada Act.

However, the government is not blocking Canadians’ access to the TikTok application itself. However TikTok has reportedly said it would challenge the Canadian government decision on national security grounds.

TikTok Canada shutdown

“As a result of a multi-step national security review process, which involves rigorous scrutiny by Canada’s national security and intelligence community, the Government of Canada has ordered the wind up of the Canadian business carried on by TikTok Technology Canada Inc,” said the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.

“The government is taking action to address the specific national security risks related to ByteDance Ltd.’s operations in Canada through the establishment of TikTok Technology Canada Inc,” said Champagne. “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.”

The minister said the government is not banning access to TikTok, but it is clear officials would prefer Canadian citizens not use the app.

TikTok is said to have 14.9 million registered users in Canada, with 5.8 million active users (Canada has a total population of 40.1 million people).

“The government is not blocking Canadians’ access to the TikTok application or their ability to create content,” said Champagne. “The decision to use a social media application or platform is a personal choice. 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, as well as to be aware of which country’s laws apply.”

“The government encourages Canadians to consult the guidance issued by Communications Security Establishment Canada’s Canadian Centre for Cyber Security to help them assess these risks,” Champagne added.

He said the dissolution order was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may harm Canada’s national security.

TikTok response

Meanwhile a TikTok spokesperson told the Associated Press in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of local jobs, and it will challenge the decision.

It is understood that TikTok has two offices in Canada – one in Toronto and one in Vancouver.

“We will challenge this order in court,” the spokesperson is quoted as saying. “The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

TikTok is of course under Chinese ownership, and its parent ByteDance moved its headquarters from Beijing to Singapore in 2020 over fears that the app could be used by Chinese officials to collect data on Western users or push pro-China narratives and misinformation.

The Canadian government in February 2023 had banned TikTok from all government-issued devices.

Many other Western governments have also banned the app on government devices.

Canada’s move comes a day after the US election of Donald Trump.

In June, Trump joined TikTok, a platform he once tried to ban during his first term of office. The app has about 170 million users in the United States.