TikTok to dissolve Canadian operations amid security concerns

Canada previously banned TikTok on government devices, citing privacy and security risks

Canada ordered the dissolution of Chinese-owned TikTok’s business operations in the country on Wednesday, citing national security concerns, though Canadians can still access the app and create content.

Innovation Minister Francois-Philippe Champagne announced the decision, noting the government’s steps to address specific security risks tied to ByteDance Ltd, TikTok’s parent company, through TikTok Technology Canada Inc.

Canada began its review of TikTok’s business expansion plans last year, and under Canadian law, foreign investments can be evaluated for national security risks. Champagne stated that the decision was based on “information and evidence collected” throughout the review process, with input from Canada’s security and intelligence agencies.

TikTok plans to challenge the order in court, calling the move harmful to local employment. “Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest,” the company posted on its website.

Canada previously banned TikTok on government devices, citing privacy and security risks. The decision mirrors U.S. concerns, where ByteDance and TikTok are contesting a federal law that mandates ByteDance to sell TikTok by January 19 or face a ban. The White House has expressed a desire to end Chinese ownership on security grounds but does not advocate a complete ban on the app.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

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