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Canada says TikTok must dissolve domestic business

Canadian citizens will still be allowed to use TikTok on their personal devices.

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mkeys@thedesk.net

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TikTok, owned by ByteDance, allows users to share short-form video content. (Photo via Unsplash)
TikTok, owned by ByteDance, allows users to share short-form video content. (Photo via Unsplash)

The Canadian government on Wednesday ordered social video platform TikTok to shut down its local offices following a national security review of the service’s parent company ByteDance.

The closure of the offices will lead to significant job losses, a TikTok spokesperson said in a statement. The company intends to challenge the directive in court.

Canadian Industry Minister François-Philippe Champagne said the order was issued because of certain security risks associated with China-based parent company ByteDance, though he did not elaborate on what those security risks were.

TikTok has come under scrutiny from some governments, including the United States, over alleged data sharing between ByteDance and Chinese officials. TikTok has denied those accusations, saying the personal data of its users are not shared with any government unless they are required to do so by law.

The order to shut down TikTok’s Canadian businesses will not deprive Canadian citizens of the app, Champagne said, adding that the “decision to use a social media application or platform is a personal choice.”

It is less of a choice for Canadian officials: The app is banned from government-issued phones, tablets and other devices, mirroring a similar move made by U.S. federal agencies in recent years.

The fate of TikTok’s business in the U.S. remains up in the air: In his first term, current President-elect Donald Trump issued an executive order banning TikTok from distribution in U.S. app stores, which was rescinded by outgoing President Joe Biden a short time later.

Biden since issued an order requiring TikTok to divest its U.S. business or face a similar ban in app stores, something the company is now appealing in federal court. Trump, who won re-election on Tuesday, has since reversed course, saying he opposes an outright ban on the app.

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About the Author:

Matthew Keys

Matthew Keys is the award-winning founder and editor of TheDesk.net, an authoritative voice on broadcast and streaming TV, media and tech. With over ten years of experience, he's a recognized expert in broadcast, streaming, and digital media, with work featured in publications such as StreamTV Insider and Digital Content Next, and past roles at Thomson Reuters and Disney-ABC Television Group.