• Canada has ordered ByteDance to shut down TikTok Technology Canada, Inc., citing national security risks, while allowing continued access to the TikTok app.
  • TikTok plans to appeal the decision, citing potential job losses for "hundreds" of Canadian employees.

Canada has issued a mandate for ByteDance to shut down TikTok Technology Canada, Inc., citing national security risks. However, the app itself remains accessible to users and businesses in Canada.

François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, affirmed this, stating, “The decision to use a social media application or platform is a personal choice.”

The closure impacts "hundreds" of jobs, TikTok said, planning to appeal the decision. A company spokesperson stated:

“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.”

The security concerns echo ongoing scrutiny over TikTok's data management practices, with critics alleging potential risks around user data access by Chinese authorities. TikTok has consistently denied these claims.

Despite maintaining its Canadian user base of about 15 million, TikTok’s operational limitations have affected planned launches in Canada, including the Creator Rewards Program and TikTok Shop, which had been anticipated by the end of 2023.

Canada joins a growing list of countries concerned about TikTok’s ties to ByteDance. Earlier, in February 2023, the app was banned on Canadian government devices. The review leading to the office closure is the latest move, occurring under the “Investment in Canada” Act.

Globally, TikTok faces heightened scrutiny; just yesterday, Australia proposed restricting social media for users under 16. The issue initially gained prominence under the Trump administration, which threatened to ban TikTok in the U.S., where the platform now has 170 million users. TikTok’s appeal in the U.S. remains unresolved, with a pending court decision to sell its U.S. operations.

Edited by Harshajit Sarmah