ordered by the federal government Dissolution of TikTok’s Canadian operations A national security review of Chinese companies operating social media platforms stopped short of ordering citizens not to use the apps.
Industry Minister François-Philippe Champagne announced the government’s “windup” request on Wednesday, saying it is aimed at addressing “risks” associated with ByteDance’s creation of TikTok Technology Canada Inc.
“This decision is based on information and evidence gathered during the review process and the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.
The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.
However, it urges people to “adopt good cybersecurity practices and learn about social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign parties. Please evaluate the possible risks of use and be aware of the following: Which country’s laws apply? ”
Champagne’s office did not immediately respond to a request for comment seeking further details on what evidence led to the government’s dissolution request, how long ByteDance must comply, and why the app would not be banned.
A TikTok spokesperson said in a statement that closing the Canadian branch means the loss of hundreds of good-paying jobs locally.
“We intend to challenge this order in court,” the spokesperson said.
“The TikTok platform remains available for creators to find audiences, explore new interests, and grow their businesses.”
The TikTok logo is seen on a building in Culver City, California, March 11, 2024. (AP Photo/Damien Dovarganes, File)
The federal Liberals ordered a national security review of TikTok in September 2023, but this was not publicly known until the Canadian Press reported in March that it was investigating TikTok.
At the time, the company said the review was based on business expansion, which amounted to the creation of a new Canadian legal entity. The company did not provide further details on what kind of expansion it is considering.
The government database listed a new business notice from TikTok in June 2023. It said Network Sense Ventures Ltd., based in Toronto and Vancouver, will be engaged in “marketing, advertising, and content/creator development activities related to the use of the TikTok app.” Canada. “
Even before the overhaul, ByteDance and TikTok had become lightning rods for privacy and security concerns, as China’s national security law requires domestic organizations to help collect intelligence.
These concerns prompted the U.S. House of Representatives in March to pass a bill that would ban TikTok unless its China-based owners sell their stake in the business.
Champagne’s office insists Canada’s review is unrelated to the U.S. bill, which has not yet been passed.
Canada’s review was conducted through the Investment Canada Act, which allows the government to investigate foreign investments that could compromise national security.
The cabinet can force investors to sell parts of businesses or shares, but Champagne said the law does not allow him to reveal details of the review.
Wednesday’s dissolution order was made in accordance with the same law.
The federal government banned TikTok from mobile devices in February 2023 after federal and state privacy commissions launched investigations into the company.
With files from Anja Karadeglija in Ottawa
This report by The Canadian Press was first published Nov. 6, 2024.
