TikTok Marked as National Risk in Canada Following Security Review

• The Canadian government ordered the “wind up” of TikTok Technology Canada, Inc. for security reasons.
• The decision was made after national scrutiny under the Investment Canada Act.
• Canadians can still access and use the TikTok app, but national cybersecurity practices advise otherwise.

The Government of Canada discovered national security risks associated with TikTok Technology Canada, Inc., following a comprehensive national security review under the Investment Canada Act, as the culmination of a multi-step review process characterized by rigorous scrutiny by Canada’s national security and intelligence community. 

The review highlighted specific national security risks associated with ByteDance Ltd.’s operations in Canada through the establishment of TikTok Technology Canada, Inc.

The decision, based on exhaustive information and evidence collected during the review, is aimed at addressing these risks. It comes as part of Canada's broader strategy to safeguard national security against potential threats posed by foreign investments, particularly in sensitive sectors like interactive digital media.

Crucially, the government emphasizes that this order does not restrict Canadians' access to the TikTok application or their ability to create content on the platform. The choice to use any social media application remains personal, but Canadians are urged to adopt robust cybersecurity practices. 

This includes evaluating the potential risks of using social media platforms and understanding how their information might be protected, managed, and shared, especially by foreign entities.

The order aligns with the March 2024 Policy Statement on Foreign Investment Review in the Interactive Digital Media Sector, which mandates enhanced scrutiny of foreign investments that could jeopardize Canada’s national security.

While Canada remains open to foreign direct investment, the government asserts its commitment to act decisively against any investment that threatens national security. Canadians are encouraged to consult resources provided by the Communications Security Establishment Canada’s Canadian Centre for Cyber Security for guidance on assessing these risks.

The closure of TikTok Technology Canada, Inc. marks a significant step in Canada's ongoing efforts to protect its digital infrastructure and national interests against potential foreign threats.

In August, The U.S. Department of Justice (DoJ) filed a lawsuit against TikTok and its parent company, ByteDance, over allegations of collecting personal information from children under 13 without parental consent, violating the Children's Online Privacy Protection Act (COPPA).