Canada has ordered the dissolution of TikTok’s business operations in the country, citing concerns over national security risks posed by the app’s Chinese parent company, ByteDance Ltd. Innovation Minister Francois-Philippe Champagne announced the decision on Wednesday, emphasizing that while TikTok’s business will be shut down, Canadians will still be able to access the platform and create content.
“The government is taking action to address the specific national security risks related to ByteDance Ltd’s operations in Canada,” Champagne said, explaining that the order targets ByteDance’s TikTok Technology Canada Inc. The Canadian government, which began reviewing ByteDance’s investment and expansion plans last year, based the decision on assessments from national security and intelligence agencies.
Under Canadian law, foreign investments can be reviewed for security risks, though specific details of the review remain undisclosed.
TikTok plans to fight the decision, with a company spokesperson stating, “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.”
This move follows Canada’s ban on TikTok from government-issued devices due to privacy and security concerns. The decision also aligns with similar actions in the United States, where President Joe Biden signed legislation giving ByteDance a deadline of January 19 to sell TikTok or face a potential ban. The White House has underscored its aim to end Chinese-based ownership of TikTok on national-security grounds, without seeking a full platform ban.
TikTok and ByteDance have since challenged the U.S. order in federal court, arguing against the requirement to divest ownership.
