Government of Canada Orders TikTok to Cease Operations in Canada Over National Security Concerns
Posted November 7, 2024 at 2:04am by iClarified
The Government of Canada has ordered the wind up of TikTok Technology Canada, Inc. following a national security review under the Investment Canada Act.
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, made the following statement:
"As a result of a multi-step national security review process, which involves rigorous scrutiny by Canada's national security and intelligence community, the Government of Canada has ordered the wind up of the Canadian business carried on by TikTok Technology Canada, Inc. 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. 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.
"The government is not blocking Canadians' access to the TikTok application or their ability to create content. The decision to use a social media application or platform is a personal choice. It is important for Canadians to adopt good cyber security practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country's laws apply. The government encourages Canadians to consult the guidance issued by Communications Security Establishment Canada's Canadian Centre for Cyber Security to help them assess these risks.
"The government's decision was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may be injurious to Canada's national security. The government applies enhanced scrutiny to investments that fall within the jurisdiction of the Investment Canada Act for a number of business sectors and activities, including the interactive digital media sector as outlined in the March 2024 Policy Statement on Foreign Investment Review in the Interactive Digital Media Sector.
"While Canada continues to welcome foreign direct investment, the government will act decisively when investments threaten our national security."
TikTok has responded to the order with the following statement.
Shutting down TikTok's Canadian offices and destroying hundreds of well-paying local jobs is not in anyone's best interest, and today's shutdown order will do just that. We will challenge this order in court. The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.
Earlier this year, President Biden signed H.R. 8038 into law which includes a provision to force ByteDance to divest itself of TikTok. ByteDance mounted a legal challenge to the law which is still underway. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for the latest updates!
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, made the following statement:
"As a result of a multi-step national security review process, which involves rigorous scrutiny by Canada's national security and intelligence community, the Government of Canada has ordered the wind up of the Canadian business carried on by TikTok Technology Canada, Inc. 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. 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.
"The government is not blocking Canadians' access to the TikTok application or their ability to create content. The decision to use a social media application or platform is a personal choice. It is important for Canadians to adopt good cyber security practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country's laws apply. The government encourages Canadians to consult the guidance issued by Communications Security Establishment Canada's Canadian Centre for Cyber Security to help them assess these risks.
"The government's decision was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may be injurious to Canada's national security. The government applies enhanced scrutiny to investments that fall within the jurisdiction of the Investment Canada Act for a number of business sectors and activities, including the interactive digital media sector as outlined in the March 2024 Policy Statement on Foreign Investment Review in the Interactive Digital Media Sector.
"While Canada continues to welcome foreign direct investment, the government will act decisively when investments threaten our national security."
TikTok has responded to the order with the following statement.
Shutting down TikTok's Canadian offices and destroying hundreds of well-paying local jobs is not in anyone's best interest, and today's shutdown order will do just that. We will challenge this order in court. The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.
Earlier this year, President Biden signed H.R. 8038 into law which includes a provision to force ByteDance to divest itself of TikTok. ByteDance mounted a legal challenge to the law which is still underway. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for the latest updates!