Canada Orders Dissolution of TikTok's Canadian Business

(Reuters) – Canada on Wednesday ordered Chinese-owned TikTok's business in the country to be dissolved, citing national-security risks. The government clarified that it is not blocking Canadians' access to the short-video app or their ability to create content.

Statement from the Minister

"The government is taking action to address the specific national security risks related to ByteDance Ltd's operations in Canada through the establishment of TikTok Technology Canada Inc," said Innovation Minister Francois-Philippe Champagne in a statement.

Ottawa began reviewing TikTok's plans to invest and expand its business in Canada last year. ByteDance is TikTok's Chinese parent company.

Under Canadian law, the government can assess potential risks to national security from foreign investments, such as the TikTok proposal. The law prevents the government from revealing the details of such investments.

Assessment Process

"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 added.

TikTok did not immediately respond to an emailed request for comment after regular business hours on Wednesday.

Additional Actions

Canada has banned the TikTok app from government-issued devices, citing an unacceptable level of risk to privacy and security.

In May, TikTok and ByteDance sued in U.S. federal court, seeking to block a law signed by President Joe Biden. The law, which gives ByteDance until Jan. 19 to sell TikTok or face a ban, reflects the White House's stance on ending Chinese-based ownership on national-security grounds but not an outright ban on TikTok.