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The federal government ordered the closure of TikTok’s Canadian offices in Vancouver and Toronto due to security concerns.

The move will not affect Canadians’ access to the hugely popular video app, which security agencies have warned could be used by China to spy on users.

The government has ordered TikTok Technology Canada to “terminate” its business in light of “national security risks” linked to the app and its Chinese parent company ByteDance, Industry Minister François-Philippe Champagne announced Wednesday. .

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“The decision was based on the information and evidence gathered during the review and the recommendations of Canada’s security and intelligence community and other government partners,” he said in a statement.

“While Canada continues to welcome foreign direct investment, the government will act decisively when investments threaten our national security.”

The announcement added that the government is not blocking Canadians’ access to the TikTok app or their ability to create content.

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s divestment request, how long ByteDance must comply and why the app was not banned.

Closing the Canadian offices would mean the loss of hundreds of well-paying local jobs, a TikTok spokesperson said in a statement.

“We will challenge this order in court,” Danielle Morgan said. “The TikTok platform will continue to be available for creators to find an audience, discover new interests, and businesses to grow.”

TikTok Technology Canada is mostly responsible for ad sales and marketing for the app. It has offices in Vancouver and Toronto.

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Champagne said Canadians will still be able to access the app after TikTok Technology Canada is dissolved.

“The government is not blocking Canadians’ access to the TikTok app or their ability to create content. Champagne said the decision to use a social media app or platform is a personal choice.

“It is important that Canadians adopt good cybersecurity practices and consider the potential risks of using social media platforms and applications, including how their information will be protected, managed, used and shared by foreign actors.”

TikTok has long been suspected by the US government, the Canadian Security Intelligence Service (CSIS) and numerous cybersecurity experts of offering the Chinese government a backdoor into users’ data.

The app’s owner, ByteDance, is based in China and is bound by strict Chinese national security laws that would force it to provide data to the government when necessary. The company said foreign user data is not stored in China.

The app was banned from federal government devices in February 2023.

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A CSIS document presented at the Public Inquiry into Foreign Interference in September reveals that the spy agency already believed that TikTok could be used by China as a tool to track foreigners in 2022.

“TikTok, the People’s Republic of China (PRC)’s first Western-based social media app, has the potential to be used by the Chinese government to expand its influence and power abroad, including in Canada,” reads the partially redacted CSIS analytical summary.

“Highly addictive short video app owned by PRC’s ByteDance allows access to (redacted) sensitive user data. “Despite assurances to the contrary, China has access to TikTok users’ personal data.”

The document states that the app has “significant access” to sensitive user data such as facial geometry, iris scans and voice recognition, as well as users’ IP address and GPS location.

The federal Liberals ordered a national security review of TikTok in September 2023, but it wasn’t public knowledge until The Canadian Press reported it was investigating the company in March.

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A government database revealed a notice of TikTok’s new business in June 2023. Network Sense Ventures Ltd. in Vancouver and Toronto. A subsidiary called “will engage in marketing, advertising and content/creator development activities” related to the use of the TikTok app in Canada.”

A search of BC’s corporate naming database shows that Network Sense Ventures changed its name to TikTok Technology Canada in August 2020. The company has more than 38,000 employees worldwide, although it’s unclear how many people work for its Canadian arm.

In a blog post published Wednesday, University of Ottawa professor Michael Geist said the decision to close Canadian offices without outright banning the app would likely do more harm than good.

“There may be good reasons to ban the app if it poses different security and privacy risks than other platforms, but banning the company instead of the app could actually make the situation worse because the risks associated with the app would remain, but the ability to hold the company accountable would be weakened,” Geist wrote. .

Even before the federal scrutiny, ByteDance and TikTok served as lightning rods for privacy and security concerns as Chinese national security laws force organizations in the country to help gather intelligence.

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A bill seeking to ban TikTok unless its China-based owner sells its stake in the business is moving through the U.S. House of Representatives.

TikTok is the fifth most popular social media app in the world, with a user reach of more than 1.5 billion, behind Facebook, YouTube, WhatsApp and Instagram but ahead of X, Snapchat and Pinterest.

With files from The Canadian Press and National Post

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