Toronto, November 11, 2024 – This is an update on a recent announcement by the Government of Canada (GOC) that may be of interest to members. On November 6, the Government of Canada publicly called for TikTok Technology Canada to ‘wind up’ its Canadian operations given identified “national security risks” related to TikTok parent ByteDance’s operations in Canada. The move is in accordance with the Investment Canada Act, which permits a review of foreign investments that may be “injurious” to Canada’s national security.
The announcement did not provide specific information about the risks, however, it does not prevent Canadians from accessing the app or using it to create content. The announcement did not provide any further direction or expectations for advertisers on the platform.
In the broader context, global response to challenges to TikTok have varied. Following the US decision to exit Bytedance by January 19 2025, the US market has witnessed spend changes in some, but not all major advertisers. Globally, a number of countries have implemented bans or restrictions on TikTok, but the ACA is unaware of any major public positions taken by major associations or agencies. There are no time considerations of note – Given high global interest by governments, advertisers, and the general public, TikTok is expected to remain in the realm of public and corporate consideration for some time.
For Canadian Advertisers, it remains within the decision realm of the individual organization whether to maintain status quo or to adjust their advertising agenda on the basis of the GOC announcement. As always, members are encouraged to connect with their agencies, legal teams, and/or strategic counsel when making a decision pertaining to their own corporate interests.
The ACA takes matters of national security and privacy very seriously and will continue to monitor this situation closely providing updates if and when they become available.
We appreciate your attention to this matter and encourage you to reach out if you have any questions.
Andrea Hunt
CEO and President
Association of Canadian Advertisers