TikTok's Canadian biz to be dissolved after govt order but app not blocked

Canada announced Wednesday it is ordering the dissolution of TikTok's Canadian business after a national security review of the Chinese company behind the social media app but said it won't block access.

Industry Minister Franois-Philippe Champagne said it is meant to address risks related to ByteDance Ltd.'s establishment of TikTok Technology Canada Inc.

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," Champagne said.

Champagne said it is important for Canadians to adopt good cybersecurity practices, including protecting their personal information.

He said the dissolution order was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may harm Canada's national security.

TikTok Canada did not immediately respond to a request for comment.

TikTok is wildly popular with young people, but its Chinese ownership has raised fears that Beijing could use it to collect data on Western users or push pro-China narratives and misinformation. TikTok is owned by ByteDance, a Chinese company that moved its headquarters to Singapore in 2020.

TikTok faces intensifying scrutiny from Europe and America over security and data privacy. It comes as China and the West are locked in a wider tug of war over technology ranging from spy balloons to computer chips.

Canada previously banned TikTok from all government-issued mobile devices, reflecting widening worries from Western officials over the video sharing app.