On Wednesday, the Canadian government mandated the dissolution of TikTok’s business operations within the country, citing concerns over national security. However, authorities clarified that Canadians would still have access to the platform and the ability to produce content.
Francois-Philippe Champagne, the Minister of Innovation, stated, “The government is taking action to address the specific national security risks related to ByteDance’s operations in Canada through the establishment of TikTok Technology Canada Inc.” His remarks underscore the government’s commitment to safeguarding national security while navigating complex business dynamics.
The review of TikTok’s plans for investment and expansion in Canada began last year, focusing on ByteDance, which is TikTok’s parent company based in China.
According to Canadian law, the government is empowered to evaluate potential national security risks associated with foreign investments, including TikTok’s proposals. However, the specifics of these assessments remain confidential.
“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,” added Champagne.
TikTok has announced its intention to contest the order in court. “Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest, and today’s shutdown order will do just that,” a spokesperson for the company commented.
Additionally, Canada has prohibited the TikTok app on government-issued devices, citing an unacceptable level of risk concerning privacy and security.
TikTok and its parent company ByteDance previously initiated legal action in a U.S. federal court in May to block legislation signed by President Joe Biden, which requires ByteDance to sell TikTok by January 19 or face a ban. The Biden administration has expressed a desire to eliminate Chinese ownership of the app on national security grounds but does not seek an outright ban on TikTok.
© Thomson Reuters 2024
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