The Canadian government on Wednesday ordered ByteDance-owned TikTok to dissolve its operations in the country, citing national security risks, but stopped short of instituting a ban on the popular video-sharing platform.
“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,” François-Philippe Champagne, Minister of Innovation, Science and Industry, said in a statement.
The government said it does not intend to block Canadians’ access to the app itself or curtail their ability to create new content, stating the use of a social media application is a “personal choice.” The use of the app has already been banned on Canadian government devices since February 2023.
That having said, it urged Canadians to adopt good cyber security practices and assess the possible risks that could arise from using social media platforms, specifically regarding how their information is secured, managed, used, and shared by foreign actors.
Furthermore, the government said the order to wind up TikTok’s business was made in accordance with the Investment Canada Act, which “allows for the review of foreign investments that may be injurious to Canada’s national security.”
In a statement shared with the Associated Press, the company said the shutdown of its Canadian offices would eliminate hundreds of local jobs, and that it intends to challenge the order in court.
TikTok, which is owned by China’s ByteDance, has raised concerns in the U.S. that the service could be compelled by Beijing to hand over data of TikTok’s U.S. consumers through domestic national security laws that require organizations to assist with intelligence gathering.
These worries prompted the U.S. government to sign a law that gives ByteDance until January 19, 2025, to divest TikTok or risk a ban in the country. TikTok sued in U.S. federal court in May, seeking to block the law.
While the company has long maintained that it doesn’t share data with the Chinese government, it has faced a complete blockade in several countries, including Afghanistan, India, Nepal, and Pakistan. The use of the app is also prohibited on government-issued devices across several countries globally.