Canada Bans TikTok Business Operations in Canada

The Canadian federal government is ordering the dissolution of TikTok's Canadian business operations after a national security review. While the app is being banned from doing business in Canada, Canadians are still free to use the app.

Industry Minister François-Philippe Champagne announced the government's 'wind up' demand on Wednesday. He says the order is meant to address risks related to ByteDance Ltd.'s establishment of TikTok Technology Canada Inc. “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,” Champagne said in a statement.

The announcement of TikTok winding up its Canadian business operations specifically mentions that Canada is not blocking access to TikTok. Canadians will still be able to create a new account and browse the app. The announcement did contain a warning for Canadians to adopt good cybersecurity practices and assess the risk of using social media platforms.

A TikTok spokesperson commenting on the wind up says the shut down of its Canadian offices will result in hundreds of job losses for Canadians. “We will challenge this order in court,” the spokesperson confirmed. “The TikTok platform will remain available for creators to find an audience, explore new interests, and for businesses to thrive.”

Meanwhile in the United States, the US House of Representatives passed a bill in March 2024 that would ban TikTok if ByteDance does not divest ownership. That ban will come into effect in January 2025 unless President-elect Trump makes an effort to overturn it. Trump has signaled his support of TikTok, despite leading the charge on the initial TikTok ban from 2020.

TikTok has been banned on federal devices in the United States since 2020. Meanwhile, the federal government in Canada banned TikTok from mobile devices in February 2023 following the launch of this security investigation.