Canada Orders TikTok to Shut Down Business Due to National Security Concern

TMTPOST -- The world’s leading short video app and platform operated by ByteDance Ltd. is facing more operation challenges in the West.

Credit：TikTok

The Canadian government has ordered to shut down TikTok Technology Canada, Inc. following a national security review under the Investment Canada Act, according to a statement of the Ministry of Innovation, Science and Industry on Wednesday.

The order aims to address the specific national security risks related to ByteDance’s operations in Canada through the establishment of the aforementioned TikTok Canada unit, the ministry said. It added 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.

“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,” said François-Philippe Champagne, Minister of Innovation, Science and Industry. “It is important for Canadians to adopt good cyber security 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. “

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

In response to the Canadian order, TikTok vowed to take legal action. It warned that shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone's best interest.

"Shutting down TikTok's Canadian offices and destroying hundreds of well-paying local jobs is not in anyone's best interest, and today's shutdown order will do just that. We will challenge this order in court," TikTok said in a post at its website.

TikTok boasts over 170 million users in the United States and holds significant economic and cultural influence. Advocates for the measure have voiced their apprehensions regarding the company's ownership structure, suggesting it could potentially grant the Chinese government access to American users' data—a claim flatly refuted by TikTok. While supporters of the potential ban say it is necessary in order to mitigate national security risks the app poses due to China-based ByteDance. TikTok previously insisted it has never shared U.S. data and never would. It has said ByteDance is not an agent of China or any other country.

The U.S. Congress has passed a bill and U.S. President Joe Biden signed into law could ban TikTok in the country in April. The Protecting Americans From Foreign Adversary Controlled Applications Act ( the “Act”) is part of a comprehensive foreign aid package providing assistance to Israel, Ukraine and other U.S allies. It gives TikTok owner ByteDance 270 days to divest its U.S. assets including TikTok, otherwise the Chinese tech giant would face a ban on its app being available in U.S. app stores or on U.S. web hosting services. It also grants the White House the authority to prolong this deadline by another 90 days if the president deems that progress has been made towards a sale.

TikTok filed a federal lawsuit in May to seek a court order to prevent the U.S. government from enforcing the Act, claiming the Act is unconstitutional for violation of the First Amendment, burdening its protected speech rights.

The “qualified divestiture” demanded by the Act to allow TikTok to continue operating in the U.S. is simply not possible: not commercially, not technologically, not legally, TikTok said in a court filling. It said it has repeatedly explained to the U.S. government and sponsors of the Act were aware of the divestment is not possible, so the Act will effectively “force a shutdown of TikTok by January 19, 2025, silencing the 170 million Americans who use the platform to communicate in ways that cannot be replicated elsewhere.”