The Canadian government has mandated the dissolution of TikTok‘s business within the country, highlighting national security risks as the primary concern, Reuters reported.
However, the government clarified that Canadian users would retain access to the app for content creation and consumption.
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Ottawa initiated a review of TikTok’s expansion plans in Canada last year.
The app, owned by Chinese company ByteDance, has been under scrutiny due to potential risks associated with foreign investments.
Canadian legislation restricts the disclosure of specific details pertaining to such security reviews.
Canada Innovation Minister Francois-Philippe Champagne was quoted by the news publication as saying: “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.”
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By GlobalData“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.”
In response to the government’s decision, TikTok expressed its intention to legally contest the order.
A TikTok spokesperson said: “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.”
The Canadian government had previously prohibited TikTok on government-issued devices, citing significant concerns for privacy and security.
This move aligns with broader international apprehensions regarding the data practices of Chinese-owned technology firms.
In a related development in the US, TikTok and ByteDance filed a lawsuit in federal court in May 2024.
They aim to overturn legislation enacted by the government on 24 April, which sets a deadline of 19 January 2025 for ByteDance to divest TikTok or face a potential ban in the country.
The White House has indicated a preference for ending Chinese-based ownership of the app over an outright ban, with national security being the primary justification.
