Ottawa Quietly Ordered National Security Review of TikTok Last September

The logo of the social media video-sharing app TikTok is seen during the launch of TikTok and Indonesia's leading e-commerce site Tokopedia's Buy Local Campaign in Jakarta, on Dec. 12, 2023. Yasuyoshi Chiba/AFP via Getty Images

The federal government ordered a national security review of the Chinese short-video streaming app TikTok in September 2023, but did not publicly disclose the probe.

“This is still an ongoing case. We can’t comment further because of the confidentiality provisions of the Investment Canada Act,” said a spokesperson for Innovation Minister Francois-Philippe Champagne in a statement to The Canadian Press.

The revelation comes after the U.S. House of Representatives passed a bill on March 13 that could lead to a ban on TikTok. The bill would require TikTok to divest from its China-based parent company, ByteDance, or would face a ban from U.S. app stores and hosting services.

When asked if Canada would consider a measure similar to the U.S. bill, Mr. Champagne’s office told The Canadian Press that the federal cabinet had “issued an order for the national security review of TikTok Canada” on Sept. 6, 2023. The cabinet order was not accessible online because the information is protected and confidential under the Investment Canada Act, the office said.

The office indicated that TikTok would be subject to “enhanced scrutiny” under a new policy on foreign investments in the interactive digital media sector that the government introduced earlier this month.

The national security review was based on the expansion of a business, which the office said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

Prime Minister Justin Trudeau declined to comment on the national security reviews when asked about the matter during a press conference on March 14.

“I made the determination that no government phones or devices can have the TikTok app. That’s a matter of security and safety,” he said. “We’re watching, of course, the debate going on in the United States.”

In total, 365 U.S. lawmakers supported the bill potentially leading to a TikTok ban, with 60 House Democrats and 15 Republicans voting against it. The bill now advances to the U.S. Senate. U.S. President Joe Biden has indicated that he would sign it if Congress passes the bill.

Bans and Scrutiny

The TikTok app has been banned from government-issued mobile devices since Feb. 28, 2023. The decision stemmed from a review by former Chief Information Officer of Canada, Catherine Luelo, who identified the app as presenting “an unacceptable level of risk to privacy and security.”

On Feb. 23, 2023, Canada’s federal privacy watchdog, along with three of the country’s provincial privacy commissioners, launched an investigation into the app, following class action lawsuits in the United States and Canada related to TikTok’s collection and disclosure of users’ personal information.

Following the federal ban, provinces and territories have also barred TikTok from government-issued devices.

In contrast to Canada’s review, the proposed U.S. bill centres on concerns that the company’s existing ownership structure poses a national security threat.

TikTok is a wholly owned subsidiary of Chinese technology firm ByteDance Ltd.

U.S. lawmakers argue that ByteDance might have to give the Chinese regime access to the data of TikTok’s U.S. users. This concern arises from Chinese national security laws, which require organizations to help with intelligence gathering efforts.

TikTok senior executive, David Lieber, confirmed that the app’s parent company has access to its user data while testifying before the House of Commons Ethics Committee on Oct. 18. In response to NDP MP Matthew Green’s question on whether TikTok has “a parent company in China that has access to user data,” Mr. Lieber replied “yes.”

Mr. Lieber, head of TikTok’s privacy public policy for the Americas, did not give a direct answer when asked if the Chinese Communist Party can also access the user data under the requirement of its National Intelligence Law, mandating Chinese civilians and private companies to comply with and support national intelligence collection

“Is that Chinese company [ByteDance], your parent company, is it also regulated under Chinese state National Law [saying] that should the Chinese government want to access their information ... that they could do that?” Mr. Green asked.

“Well, I’m not an expert in Chinese law,” Mr. Lieber replied.

Jackson Richman and The Canadian Press contributed to this report.