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Canada Orders Dissolution of TikTok’s Business Amid National Security Concerns

By  |  November 7, 2024

In a move aimed at safeguarding national security, Canada has ordered the dissolution of TikTok’s Canadian business, which is owned by the Chinese tech company ByteDance. According to Reuters, the decision does not block Canadians from using the popular video-sharing platform, nor does it prevent content creation on the app.

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    The Canadian government expressed concerns over security risks posed by ByteDance’s operations in the country, citing national security considerations. “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.,” stated Innovation Minister François-Philippe Champagne in an official statement.

    Related: TikTok Hit with Lawsuits from 13 US States and DC

    The announcement follows Ottawa’s review of TikTok’s expansion plans in Canada, which began last year. Under Canadian law, authorities are empowered to assess foreign investments to determine potential national security risks. However, due to confidentiality constraints, details regarding specific investment assessments remain undisclosed, as noted by Reuters.

    The review included an assessment of ByteDance’s proposed investment in Canada, with input from Canada’s intelligence and security agencies. “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 explained.

    Although Canada has stopped short of banning TikTok outright, this decision reflects a growing unease among Western countries over data privacy and potential foreign influence tied to the app’s Chinese ownership. In recent years, governments worldwide have raised concerns over the handling of user data and its potential access by the Chinese government, leading to restrictions or outright bans in some countries.

    Source: Reuters