Ottawa orders shutdown of TikTok’s Canadian arm – but citizens can keep using popular app

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The federal government has decided not to ban TikTok use in Canada but is ordering parent ByteDance Ltd. to shut its domestic subsidiary.

Innovation, Science and Industry Minister François-Philippe Champagne said in a statement Wednesday that the decision to ban TikTok Technology Canada Inc. was related to “specific national security risks” based on information and evidence collected as part of a review under the Investment Canada Act, on the advice of Canada’s security and intelligence community and other partners. But Ottawa is leaving it up to Canadians to decide whether to use the popular social-media app and will not block their access or ability to create content.

However, last year the federal government prohibited having the app on the phones of public servants. Other institutions including The Globe and Mail have banned its use on company-issued phones.

“The decision to use a social media application or platform is a personal choice,” Mr. Champagne said. He encouraged Canadians to adopt good cybersecurity practices and assess the possible risks themselves based on guidance provided by Communications Security Establishment Canada, a federal agency.

TikTok spokeswoman Danielle Morgan said in an e-mail that forcing a shutdown of the Canadian operation “and destroying hundreds of well-paying local jobs is not in anyone’s best interest.” She said the company will challenge the move in court.

The decision comes on the heels of Tuesday’s U.S. election victory by former president Donald Trump, who had pushed to ban TikTok during his first term. His successor, Joe Biden, signed a bill in April forcing TikTok to break ties with its Chinese owner by early 2025. The bill would ban the app in the U.S. unless it is sold by its parent. (Its use is banned on some U.S. government devices). TikTok has challenged the move in court as unconstitutional.

But the issue is in doubt after Mr. Trump reversed his position, pledging during the election campaign to “save TikTok in America” now that he has joined the app and has 13.7 million followers.

TikTok chief executive officer Shou Zi Chew has pledged to move all U.S. data to U.S.-based servers, while the company has said data for Canadians are stored on servers in Singapore, Malaysia and the U.S.

TikTok has portrayed itself as a kinder, gentler social-media site where users post dances and snappy videos. But the platform has faced concerns related to safety and privacy stemming from the possible involvement of the Chinese government and whether it has been used as a tool for propaganda or spying. TikTok, like all Chinese-owned companies, is required under Chinese law to share information with its government, if requested. Similar concerns have led to bans on the use of telecom equipment made by China’s Huawei Technologies Co. Ltd. in Canada and its intelligence-sharing allies.

Like other social-media platforms, TikTok collects user data including location, contacts, likes and shares. ByteDance admitted in 2022 that employees used the app to spy on U.S. journalists. Michael Geist, who holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa’s faculty of law, blasted the twin decisions in a blog on Wednesday, saying it “may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened.” He added the decision seemed to undercut the government’s digital policies including its online streaming and online harms acts. If there are real security and privacy issues, he said, “the government should surely take action.”

Richard Lachman, associate professor with Toronto Metropolitan University’s RTA School of Media, agreed, calling the Canadian government moves “bizarre” in an interview. “This seems quite different than I would have expected might be the fallout if the U.S. had gone ahead.”