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Canada Orders Closure of TikTok Subsidiary, Citing National Security Concerns

Canada has banned the TikTok subsidiary.
Image: Retail TouchPoints

Following a national security review, the government of Canada has ordered TikTok Technology Canada to wind down its operations in the country. However, Canada will not ban citizens’ access to the TikTok app, with Minister of Innovation, Science and Industry François-Philippe Champagne saying in a statement that “the decision to use a social media application or platform is a personal choice.”

“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,” said Champagne. “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. While Canada continues to welcome foreign direct investment, the government will act decisively when investments threaten our national security.”

The move to shut down the TikTok subsidiary was made under the purview of the Investment Canada Act, which allows the country to take action in the case of foreign investments that could be injurious to Canada’s national security.

While not going so far as to completely ban the app, Champagne did advise Canadians to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

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Trump Signals Intent to Reverse U.S. TikTok Ban

The move by Canada comes as the social media platform’s fate also hangs in the balance in the U.S. Earlier this year, the Biden administration signed a law that requires TikTok to cut its ties with its Chinese owner or be banned, with a deadline of Jan. 19, 2025.

TikTok has appealed the U.S. ban, and a decision is expected on that case in December; however, it may become a moot point. Despite being among the first politicians to propose a ban of the app in 2020 during his first term as President, Donald Trump, who will take office again in early 2025, indicated during his recent campaign that he has changed his tune, saying, for example, in a September campaign video that “for all of those who want to save TikTok in America, vote for Trump.” Trump’s change of heart was likely influenced, at least in part, by lobbying from investor Jeff Yass, who holds a 15% stake in TikTok parent ByteDance, and not coincidentally ended up being one of the biggest donors this election cycle, according to Vanity Fair.

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