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TikTok will be allowed to maintain its business operations in Canada under new rules, including “enhanced protection” of Canadian users’ data, after the completion of a new national security review that reverses the conclusion of a previous one.
A statement from Industry Minister Melanie Joly on Monday said the popular social media platform has agreed to “new security gateways and privacy-enhancing technologies to control access to Canadian user data.”
TikTok will also implement enhanced protections for minors in line with the steps agreed to in the federal privacy commissioner’s joint investigation into the handling of young users’ data and age limits.
An independent third-party monitor will be appointed to regularly audit and verify TikTok’s data access controls and provide reports to the federal government.
“The government of Canada will exercise its full authorities under the Investment Canada Act and ensure the full implementation and enforcement of the measures committed to by TikTok Canada,” Joly said in a statement.
“Further, this decision will protect Canadian jobs, ensuring that TikTok Canada maintains a physical presence in Canada, with commitments to invest in its cultural sector.”
TikTok’s statement on the agreement focused on that future investment and support for Canadian creators and users, which the company said numbers over 16 million monthly visitors to the platform.
It said maintaining its local business operations will help support Canadian creators and organizations that use TikTok.
TikTok added its enhanced security measures will form “a highly secure barrier around Canadian user data.”
Ottawa ordered the wind-down of TikTok’s Canadian business operations in 2024 after an initial national security review, but said it would still allow Canadians to use the app.
Privacy and safety concerns have been raised about TikTok and its China-based parent company, ByteDance, because of Chinese national security laws that compel organizations in the country to assist with intelligence gathering.
TikTok challenged the order in federal court, which overturned the shutdown in January of this year.
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The federal government asked for a court ruling to set aside the 2024 decision in a letter that said Ottawa and TikTok had agreed to seek the court order and launch another national security review.
The agreement to set aside the shutdown order came shortly after Prime Minister Mark Carney visited China and secured a deal to get China to lower agricultural tariffs in exchange for opening some market access for Chinese electric vehicles.
Joly’s statement on Monday said the new decision “follows a thorough assessment of the information and evidence gathered during the review process, including advice from Canada’s security and intelligence community and other government partners.”
The statement echoed language used in the 2024 announcement justifying the shutdown order, though Ottawa has never fully detailed why it was deemed necessary for TikTok’s Canadian office to close.
“Protecting Canadians’ data and the safety of children online will always be a top priority of the government,” Joly added.
The statement noted Canada’s approach to TikTok was in line with the European Union, which has insisted on similar data privacy measures for its users and independent oversight.
In the U.S., TikTok’s assets have been spun off into a new legal entity that is majority-owned by American tech firms, including Oracle, which will oversee American users’ data and privacy. ByteDance remains a minority stakeholder in the U.S. venture.
TikTok told Global News on background that it never actually closed its office in Toronto during the legal challenge over the shutdown order.
Monday’s announcement, it added, enables TikTok to resume its local investments and work that was paused by Ottawa’s initial decision.
Joly’s announcement comes after the Office of the Privacy Commissioner of Canada told Global News in January it was looking into whether TikTok’s recent privacy policy updates would impact Canadian users.
In a privacy policy update issued on Jan. 22, TikTok detailed the information it collects from users of the app, including new plans to collect information about what appears to be more detailed location tracking.
Many users and U.S. media outlets have also noted the update states TikTok is collecting information where applicable under local laws surrounding “sexual life or sexual orientation, status as transgender or nonbinary, citizenship or immigration status.”
— With files from Global’s Adriana Fallico and The Canadian Press
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