Canada orders TikTok’s Canadian business to be dissolved but

TORONTO — Canada announced Wednesday that it will not block access to the popular video-sharing app TikTok but is ordering the dissolution of its Canadian business following a national security review of the Chinese company behind it.

Industry Minister François-Philippe Champagne said the aim was to address risks related to the establishment of ByteDance Ltd. TikTok Technology Canada Inc.

“The government is not blocking Canadians’ access to TikTok or their ability to create content. The decision to use a social media app or platform is a personal choice,” Champagne said.

Champagne said it’s important for Canadians to adopt good cybersecurity practices, including protecting their personal information.

He said the dissolution order was issued in accordance with the Investment Canada Act, which allows the review of foreign investments that may harm Canada’s national security. He said the decision was based on information and evidence collected during the review process and on the advice of the Canadian security and intelligence community and other government partners.

A TikTok spokesperson said in a statement that closing its offices in Canada will mean the loss of hundreds of local jobs.

“We will appeal this matter in court,” the spokesman said. “The TikTok platform will continue to be available for creators to find an audience, explore new interests, and thrive.”

TikTok is very popular among young people, but its Chinese ownership has raised concerns that Beijing may use it to collect data on Western users or promote pro-China narratives and misinformation. TikTok is owned by ByteDance, a Chinese company that moved its headquarters to Singapore in 2020.

TikTok faces intense scrutiny from Europe and America over security and data privacy. It comes as China and the West engage in a broader war over technology ranging from spy balloons to computer chips.

Canada previously banned TikTok from all government-issued mobile devices. TikTok has two offices in Canada, one in Toronto and one in Vancouver.

“Banning the company instead of the app may actually make matters worse because the risks associated with the app will still exist but the ability to hold the company accountable will be weakened,” Michael Guest, Canadian Research Chair in Internet and E-Commerce Law at the University of Ottawa, said in a blog post.

Canada’s move comes a day after the election of Donald Trump in the United States. In June, Trump joined Tik Toka platform he once tried to ban while in the White House. It has about 170 million users in the United States

Trump attempted to ban TikTok through an executive order stating that “the proliferation of mobile applications developed and owned by Chinese companies in the United States represents a threat to national security.” The courts blocked the measure after a lawsuit was filed against TikTok.

Both the US FBI and the Federal Communications Commission have warned that ByteDance could share user data such as browsing history, location and biometric identifiers with the Chinese government. TikTok said it has never done so and would not do so if asked.

Trump said earlier this year that he still believes TikTok poses a national security risk, but opposes banning it.

US President Joe Biden signed legislation in April that would force ByteDance to sell the app to a US company within a year or face a national ban. It is not clear whether this law will survive TikTok’s legal challenge or whether ByteDance will agree to the sale.