Canada reviews TikTok's expansion proposal over national security implications

Canada announced a national security review of TikTok's proposal to expand its short-video app business within the country earlier in September, as stated by the industry ministry on Thursday (March 14).

The potential outcomes of this review vary, ranging from Canada requiring TikTok to implement mitigation measures to potentially blocking the expansion altogether, which could contribute to the company's existing challenges.

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On Wednesday, the US House passed a bill mandating TikTok's Chinese owner, ByteDance, to divest the app's US assets or face a ban. This legislative action represents the latest response from Washington to address national security concerns about China, spanning various sectors from connected vehicles to advanced artificial intelligence chips to infrastructure components at US ports.

The Canadian review, as clarified by the industry ministry's statement, solely focuses on TikTok's investment plan. Consequently, it is unlikely to result in an outright ban akin to the proposed action in the United States.

A government spokesperson acknowledged that Canada is closely monitoring developments related to the proposed US legislation but refrained from commenting on the specifics of Canada's review, emphasising that it is unrelated to the US bill.

Under Canadian legislation, the government has the authority to evaluate potential national security risks associated with foreign investments, such as the TikTok proposal. However, the law prohibits disclosing the details of such investments.

Last year, Canada prohibited TikTok from government-issued devices, citing an "unacceptable" level of risk to privacy and security. Additionally, Canada's privacy commissioner is conducting an investigation into TikTok's practices regarding the collection, usage, and disclosure of personal information.

In response, a TikTok spokesperson affirmed the company's cooperation with the national security review and reiterated their commitment to maintaining platform safety and security for Canadian creators, artists, and small businesses.

(With inputs from agencies)