In September 2023, the federal Liberals initiated a national security review of TikTok, a popular app based in China. This move was not publicly disclosed at the time, as reported by The Canadian Press.

A spokesperson for Industry Minister Francois-Philippe Champagne stated, “This is still an ongoing case. We can’t comment further due to the confidentiality provisions of the Investment Canada Act.” The government emphasized its commitment to taking action to protect Canada’s national security if needed.

Recent developments in the U.S. have also put pressure on TikTok’s operations. The U.S. House of Representatives passed a bill that could potentially ban TikTok unless its Chinese owner, ByteDance, divests its stake. Concerns revolve around data sharing with the Chinese government.

The Canadian government’s security review was triggered by TikTok Canada’s expansion efforts, including the establishment of a new Canadian entity. Details of this expansion are confidential under the Investment Canada Act.

As part of the review process, there is enhanced scrutiny on foreign investments in the interactive digital media sector. It’s important to note that this Canadian review is separate from the proposed U.S. legislation awaiting Senate approval.

Digital First Canada, an advocate for digital creators supported by TikTok, expressed concerns about potential consequences if TikTok is banned in the U.S. They believe that Canadian creators’ careers on TikTok could be at risk without access to the large American audience.

TikTok creators generate revenue through ads on the platform, similar to YouTube but with a unique algorithm-driven content feed. The app’s addictive nature has made it popular among users worldwide.