Lawmakers had voiced growing concerns over TikTok’s threats to national security amid an intensifying U.S.–China tech war
Prior to Friday’s ruling, TikTok had insisted it was unwilling to sell and would shut down in the U.S. The Financial Post’s Yvonne Lau explains the latest developments what they will mean for the millions of North Americans who use the platform.
What are the latest developments?
On Jan. 18, Google and Apple scrubbed TikTok from their app stores. That evening, TikTok went dark for U.S. users — for about half a day. Those in the U.S. who tried to access the app received the pop-up message: “Sorry, TikTok isn’t available right now. A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now.” The message added that then-President-elect Donald Trump has promised to “work with us on a solution to reinstate TikTok once he takes office. Please stay tuned!”
By the morning of Jan. 19, Trump made good on that promise, confirming that he would issue an executive order on the first day of his presidency to provide more time for a deal to be reached. Trump wrote on Truth Social that he wants the U.S. to “have a 50 per cent ownership in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to stay up.”
TikTok rebooted the app and webpage for U.S. users shortly after, with the welcome message thanking Trump for his efforts.
Why did the U.S. ban TikTok in the first place?
American lawmakers had voiced growing concerns over TikTok’s threats to U.S. national security amid an intensifying U.S.–China tech war, with some in Washington arguing that TikTok could potentially funnel American user data to the Chinese government or that Beijing could use the app to spy or as an access point to embed Chinese malware on U.S. devices. TikTok has insisted that it has never provided user data to the Chinese government and would refuse to do so if asked, but that had not allayed concerns in the U.S.
What did the court rule?
The U.S.’s top court disagreed. In its Friday ruling, the Supreme Court said: “Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary. We conclude that the challenged provisions do not violate petitioners’ First Amendment rights.”
What happens next? Could the ban be delayed or reversed?
In an official statement on Sunday, TikTok said that it is working with the President “on a long-term solution that keeps TikTok in the United States,” signalling that it is open to negotiating a deal. The company’s stance, as well as that of China’s, seemed to be an about-face. Beijing previously said that it would “firmly oppose” a forced sale of TikTok. On Sunday, China’s Foreign Ministry stated that companies can make their own decisions on operations and acquisitions.
The app’s future in the U.S. still hangs in the balance. It remains unclear whether Trump can legally grant an extension of the ban. Mike Waltz, Trump’s incoming national security adviser, told Fox News prior to the court ruling that the new administration will find a way to “preserve” TikTok while safeguarding user data. The second question is whether TikTok will ultimately approve a sale of its U.S. business that is valued around US$50 billion.
What is Canada’s stance on TikTok?
TikTok’s case is rare and “a big deal,” said a senior partner at a Toronto law firm who asked not to be named because their firm represents other social media platforms. “To have a company wind-up its business operation on Canadian soil is a draconian approach (that is) not taken lightly,” he said. “You’re unscrambling the eggs, because they’ve already established an operation here, hired people and are contributing to the economy.” TikTok is challenging the government’s order and filed for a stay in Vancouver’s federal court last December. For now, TikTok’s Canadian offices in Toronto and Vancouver remain operational and employ hundreds.
What does a potential U.S. ban mean for Canada?
So far, Canadian content creators have not been affected, though the temporary shutdown raised concerns about a potential loss of U.S. users to different platform. If the U.S. does follow through with its ban, “Canada will be hard-pressed not to take similar action,” said Vivek Krishnamurthy, director of the University of Colorado Boulder’s Technology Law and Policy Clinic and former law professor at the University of Ottawa who recently served on Canada’s online safety expert advisory group. Even if Ottawa abstains from a full ban, a U.S. ban means that Canadian users could experience a “degraded version” of TikTok, he said. “I would expect that a significant percentage of TikTok Canadian traffic is served from infrastructure in the U.S. It seems to me that if TikTok goes dark in the U.S., Canadian users are likely to feel an impact.” The Canadian government has not commented on the U.S. bill or announced any similar action. TikTok Canada declined to comment but confirmed that the app remains available in Canada.