Yesterday, the Federal Court of Canada just ruled in favor of TikTok against the government’s order to close TikTok’s Canadian headquarters. This way, the extremely popular social media platform, owned by Meta, is able to maintain its operations in the authoritarian state. TikTok, owned by the Chinese company ByteDance, has more than 14 million users in Canada. Over the last five years combined, it has re-granted millions of dollars through programs and partnerships to support thousands of local artists and creators. This decision follows a tempest of national security alarm after national security alarms were raised about the app’s Chinese ownership.
The Liberal government had initially ordered TikTok to shut down its Canadian offices by 2024, citing fears of “cyber-enabled espionage and foreign interference.” Instead, the federal government dropped its push to ban TikTok for individual users. Critics contend that this option fails to address core privacy and security concerns. The court’s decision orders Industry Minister Mélanie Joly to begin a new review process. Yet today’s decision again leaves the future of TikTok in Canada up in the air.
TikTok Canada already boasts a large footprint within the country, with offices in Toronto and Vancouver. The platform goes beyond this and requires the platform to actively support Canadian culture. It funds cultural events such as the Juno Awards and the Toronto International Film Festival. Prompted by the federal government’s complaint, TikTok then withdrew its sponsorship from all but 10 of the affected institutions. This controversial move has raised alarm about what it would mean for local arts and culture.
Danielle Morgan, a spokesperson for TikTok Canada, noted that keeping TikTok’s Canadian talent was key to Ms. Morgan’s stated intention to keep TikTok Canadian.
“Keeping TikTok’s Canadian team in place will enable a path forward that continues to support millions of dollars of investment in Canada and hundreds of local jobs,” – Danielle Morgan
The parliamentary committee that met in 2023 pointed to concerns about TikTok’s ownership by ByteDance and its impact on user security. Critics such as Michael Geist have recently cast doubt on the strength of the government’s actions.
“The government’s decision to ban the corporate entity, but not the app, never really addressed the fundamental concerns that Canadians might have had around privacy or security…. And with the company banned from a corporate perspective in Canada, it was withdrawing support for various cultural initiatives,” – Michael Geist
Geist further elaborated on the court’s decision, noting that it was more about revisiting the government’s approach than making a substantive ruling.
“What the court did was execute what’s known as a consent order. Essentially, the government caved and said they would go back to the drawing board on this,” – Michael Geist
Even as discussions go back and forth on TikTok’s presence in Canada, one thing is unclear: national security and user privacy. The federal government’s approach has come under fire for failing to be impactful, with many asking what concrete objectives were met.
“I think the Canadian government found itself really backed into a corner with a strategy that just did not work, and this provides them with an exit from that,” – Michael Geist
