Question Period Note: TIKTOK TECHNOLOGY CANADA, INC. WIND UP

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About

Reference number:
ISI-2024-QP-00047
Date received:
Dec 6, 2024
Organization:
Innovation, Science and Economic Development Canada
Name of Minister:
Champagne, François-Philippe (Hon.)
Title of Minister:
Minister of Innovation, Science and Industry

Issue/Question:

Can the Minister explain on his decision to order the wind up of the Canadian business carried on by TikTok Technology Canada, Inc.?

Suggested Response:

• While Canada continues to welcome foreign investment, the Government of Canada will act decisively when investments threaten national security.

• Following a national security review under the Investment Canada Act, the Government of Canada ordered TikTok Technology Canada, Inc. to wind up the business activities it carries on in Canada.

• This decision was based on the information and evidence collected over the course of the multi-step national security review process and on the advice of Canada’s security and intelligence community.

• Due to confidentiality provisions of the Investment Canada Act, the Government of Canada cannot comment further.

Background:

Established in 2020, TikTok Technology Canada Inc. (TikTok Canada) was a British Columbia incorporated company engaged in the marketing, advertising and content creator development activities in relation to the use of the TikTok application in Canada. It was a wholly-owned subsidiary of TikTok Ltd., which is a indirect wholly-owned subsidiary of ByteDance Ltd.
On November 6, 2024, Minister Champagne announced through a ministerial statement that the Government of Canada had ordered the wind up of TikTok Technology Canada, Inc. following a national security review under the Investment Canada Act.
On the same day, TikTok Ltd. issued a statement that the company would challenge the Order in court and that the App would remain accessible to Canadians.

Additional Information:

• The Government of Canada is not blocking Canadians’ access to the TikTok application or their ability to create content.

• The use of a social media application or platform is a personal choice and the Government of Canada strongly recommends all Canadians understand the risks and make informed decisions about their usage of social media applications or platforms.

• The Government of Canada is taking action to address the specific national security risks related to ByteDance’s operations in Canada through the establishment of TikTok Technology Canada Inc.