(Bloomberg) -- Canada ordered ByteDance Ltd. to wind up its subsidiary in the country, though the move will not stop Canadians from using the popular Chinese-backed social video app.
The decision follows a national security review, with evidence and advice from Canada’s security and intelligence agencies, according to a statement Wednesday from Industry Minister Francois-Philippe Champagne. In 2023, Canada joined allies including the US and European Union in banning the application on government-issued devices.
TikTok Technology Canada Inc., which has offices in Toronto and Vancouver, will challenge the order in court, a spokeswoman said by email.
“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,” the company’s statement added.
In May, the former head of Canada’s intelligence agency said information collected by the app is available to the government of China, which TikTok denied.
In a blog post, University of Ottawa law professor Michael Geist said it was a “curious” move, adding that “banning the company rather than the app may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened.”
US President-elect Donald Trump previously tried to ban TikTok back in 2020, and in April a bipartisan bill was passed forcing ByteDance to divest its TikTok ownership stake or face a US ban.
TikTok is fighting that law in court. However, in July Trump told Bloomberg Businessweek that he is now “for TikTok, because you need competition.”
--With assistance from Brian Platt.
(Updates with TikTok response in third paragraph and additional context.)
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