BUSINESS + ECONOMY

Canada orders TikTok’s Canadian business to be dissolved but won’t block app

Nov 7, 2024, 6:00 AM

FILE - The icon for the video sharing TikTok app is seen on a smartphone, Feb. 28, 2023, in Marple ...

FILE - The icon for the video sharing TikTok app is seen on a smartphone, Feb. 28, 2023, in Marple Township, Pa. (AP Photo/Matt Slocum, File)
Credit: ASSOCIATED PRESS

(AP Photo/Matt Slocum, File)

TORONTO (AP) — Canada announced Wednesday it is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media app but said it won’t block access.

Industry Minister François-Philippe Champagne said it is meant to address risks related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

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

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

Related: 13 states plus Washington D.C. join Utah in lawsuit against TikTok

He said the dissolution order is in accordance with the Investment Canada Act. That allows for the review of foreign investments that may harm Canada’s national security.

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

“We will challenge this order in court,” the spokesperson said. “The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

TikTok is wildly popular with young people, but its Chinese ownership has raised fears that Beijing could use it to collect data on Western users or push pro-China narratives and misinformation. Chinese company ByteDance owns the app.

TikTok faces intensifying scrutiny from Europe and America over security and data privacy. It comes as China and the West lock in a tug of war over technology.

Canada previously banned TikTok from all government-issued mobile devices, reflecting widening worries from Western officials over the video sharing app.

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Canada orders TikTok’s Canadian business to be dissolved but won’t block app