On Wednesday, Canada mandated the dissolution of TikTok Technology Canada Inc., the business arm of the Chinese-owned short-video platform TikTok, citing concerns over national security. However, the government clarified that it is not preventing Canadians from accessing the app or producing their own content.
“The government is taking action to address specific national security risks associated with ByteDance’s operations in Canada,” stated Innovation Minister Francois-Philippe Champagne.
The Canadian government initiated an investigation into TikTok’s proposed investment and expansion plans in the country last year. ByteDance serves as the parent entity of TikTok, based in China.
According to Canadian law, the government has the authority to evaluate potential national security threats stemming from foreign investments, including those posed by TikTok. The specifics of such assessments, however, cannot be disclosed publicly.
“This decision was founded on the information and evidence gathered during the review process, guided by insights from Canada’s security and intelligence agencies, along with other governmental partners,” Champagne explained.
In response to the government’s action, TikTok announced plans to contest the order in court, arguing against the implications of the dissolution.
A spokesperson for TikTok remarked, “Shutting down TikTok’s Canadian offices and eliminating hundreds of well-paying local jobs is not beneficial for anyone, and the shutdown order issued today will certainly lead to that outcome.”
Additionally, Canada has prohibited the use of the TikTok app on devices issued by the government, citing significant privacy and security risks associated with its use.
In a related development, TikTok and ByteDance filed a lawsuit in a U.S. federal court in May to challenge a law signed by President Joe Biden. This legislation, enacted on April 24, requires ByteDance to divest from TikTok by January 19 or face a potential ban. The White House has expressed its desire to see TikTok’s Chinese ownership cease due to national security concerns, while stopping short of a complete ban on the app.
© Thomson Reuters 2024
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