On Wednesday, Canada announced it is ordering TikTok, the popular short-video app owned by the Chinese company ByteDance, to dissolve its Canadian business over national security risks. The Canadian government, however, clarified that it will not restrict Canadians from accessing or creating content on the platform.
National Security Risk?
The decision follows a comprehensive security review of TikTok’s operations in Canada, specifically concerning ByteDance’s establishment of TikTok Technology Canada Inc. Industry Minister François-Philippe Champagne explained that the move aims to address security concerns related to foreign ownership and data handling practices. Champagne cited advice from Canada’s security and intelligence agencies as key factors in the decision.
“The government is taking action to address the specific national security risks related to ByteDance Ltd’s operations in Canada,” Champagne said. However, he emphasized that this does not affect Canadians’ right to access TikTok or produce content on it.
Trouble for TikTok?
TikTok has faced scrutiny from multiple Western governments, including those in the U.S., U.K., and European Union, over concerns about its potential to share user data with the Chinese government. ByteDance has denied these allegations, asserting that it prioritizes data privacy and has never shared user information with Chinese authorities.
In a statement responding to Canada’s decision, a TikTok spokesperson expressed disappointment, saying the shutdown would eliminate hundreds of Canadian jobs. TikTok plans to challenge the order in court, arguing that the platform provides a valuable space for content creators and local businesses.
The order to dissolve TikTok Technology Canada Inc. was made under the Investment Canada Act, which allows the government to evaluate foreign investments for potential security risks. TikTok previously faced restrictions in Canada in February, when the government banned the app from all government-issued devices, citing security concerns.
Canada’s decision arrives amid growing global scrutiny of Chinese technology firms. The U.S. has also taken steps to limit TikTok’s reach. In April, President Joe Biden signed legislation mandating that ByteDance must either sell TikTok’s U.S. operations to an American company by January 19 or face a nationwide ban.
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